Macron wants balance in EU-China relations. “Brussels must start implementing a new economic program”

French President Emmanuel Macron on Tuesday in the Financial Times called for restoring balance in trade relations between the European Union and China. In his opinion, the release of European funds will stimulate innovation and economic growth on the continent.

The French leader recalled that China's trade surplus with the rest of the world currently amounts to USD 1 trillion from the EU, it has doubled to EUR 300 billion over the last decade. In his opinion, “the combination of US tariffs and limited domestic consumption has led to Chinese exports now flooding Europe.” Macron stressed that such a situation “is not sustainable development for either Europe or China.” He warned, however, that imposing tariffs on Chinese imports is not a solution because it does not lead to cooperation.

In his article, the president predicts the continuation of the current policy, which will result in, among others: low productivity in EU countries and Chinese export-led growth, which “threatens a serious trade dispute” between the parties.

Strengthening the single market and unlocking European savings would boost innovation and economic growth on the continent. Equalizing investment opportunities in both regions would increase the share of domestic demand as a source of growth, Macron noted.

According to the head of the French state, Brussels must start “pursuing a new economic agenda based on competitiveness, innovation and protection.” It is intended to concern the internal market, especially the energy sector, health care and the digital economy, as well as investments in innovation, research and technology. EU support should also “make it easier for companies to scale their operations and compete with global competitors.”

Macron: We can't be naive

We should not be ashamed of a “European preference” as long as it means supporting strategic production – in automotive, energy, healthcare and technology – within our own borders. Protection against unfair competition is the foundation of resilience. We cannot be naive: a credible protection strategy requires having the means to defend ourselves against those who break the rules, Macron wrote.

According to the president, it is necessary for Europe to use the pool of savings amounting to approximately EUR 30 trillion. As he mentioned, every year EUR 300 billion is invested in projects outside its borders.

“It's time for us Europeans to take the risk of investing in our own companies. Regulatory simplification, securitization and unified supervision will release much-needed capital. The implementation of the Savings and Investment Union will ensure the free flow of European savings, enabling the financing of innovation and economic growth,” announced the French leader.

The recipe includes: development of euro stablecoins and introduction of the digital euro

He called for a strengthening of the international role of the euro. In his opinion, this is possible through “the development of euro stablecoins and the introduction of a digital euro, as well as the creation of safe and liquid assets for the financing of defense and technology.” “European competitiveness should not fall victim to the depreciation of the dollar and yuan,” he added.

Macron noted that “it is necessary to balance the flows of foreign direct investment.” “China has long benefited from European foreign direct investment and cooperation, including in the field of technology. The EU has invested nearly EUR 240 billion in China, while China has invested less than EUR 65 billion in the EU. Currently, China is a leader in energy transition and clean mobility technologies, and Europe continues to lead in many service sectors. The optimal framework for our two regions is a framework based on cooperation,” he emphasized.

“During my recent trip to China, I made it clear that either we rebalance economic relations through cooperation – engaging China, the US and the EU in a genuine partnership – or Europe will have no choice but to adopt more protectionist measures. I strongly prefer cooperation, but I will favor the latter option if necessary,” the president warned.

In the Financial Times, Macron expressed his belief that “by truly taking into account each other's needs and interests, we can create an international macroeconomic agenda that will benefit us all.” He reiterated that the most urgent thing is to “strengthen the EU's competitiveness, innovation and protection.” He added that “this also means defending the European Union's regulatory sovereignty, including vis-à-vis the United States.”

Macron announced that the main idea of ​​the French presidency of the G7 in 2026 will be “solving global imbalances.” “Both large and emerging economies will be invited to join forces. For this rebalancing to be successful for all, we need immediate and coordinated action,” added the French president.

From London Marta Zabłocka (PAP)

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