French President Emmanuel Macron has warned that the European Union (EU) may impose "drastic measures" on China in the coming months if Beijing does not address its unsustainable trade surplus. Speaking today, following a three-day state visit to China, Macron stated, "I tried to explain to China that its trade surplus is unsustainable because it is killing its customers, especially since China barely imports anything from us anymore. I said that if they do not respond, Europe will have to adopt drastic measures in the coming months."

Macron suggested that such measures could mirror steps already taken by the United States, including tariffs on Chinese products. The goods trade deficit between the EU and China, the world's second-largest economy, has surged by nearly 60% since 2019. According to the business daily Les Echos, this deficit exceeded 300 billion euros (350 billion USD) in 2024.

The 27 EU member states cannot individually set trade policies, including tariffs; instead, they are represented by the European Commission. Macron, who leads the EU's second-largest economy after Germany, acknowledged the difficulty of achieving bloc-wide consensus on tariffs against China. He stated, "Germany is not yet entirely aligned with our position."

President Macron speaks to students at Sichuan University, China on 5/12. Photo: AFP

The administration of US President Donald Trump imposed 57% tariffs on Chinese products this year. An agreement reached between the two countries in October subsequently reduced the tariff rate to 47%. This US protectionism has worsened the issue for the EU, as China is now diverting products originally destined for the US to the European market.

Macron asserted, "China wants to penetrate the heart of Europe's industrial and innovation model, which is based on the metalworking machinery and oto industries." He emphasized, "We are caught in the middle. This is a matter of survival for European industry."

During his visit to China last week, Macron suggested the EU should accept more direct investment from China as a strategy to help reduce the trade deficit. He argued, "We cannot keep importing forever; Chinese companies must come to Europe," while urging the EU to balance protecting its most vulnerable industries with fostering competitiveness. The French president is also advocating for a more conciliatory approach with China, suggesting measures such as lifting European restrictions on semiconductor machinery exports and limiting China's rare earth exports.

Huyen Le (According to AFP, Reuters)