French president Emmanuel Macron,who recently paid a state visit to China,warned that high tariffs could be imposed on China.
according to AFP, President Macron said this in an interview with the French business magazine Les Echos published on the 7th (local time), assuming that China does not take steps to reduce the large trade surplus it is indeed gaining from the European Union (EU).
Macron Warns of EU Tariffs on Chinese Goods Amidst Growing Trade Deficit
French President Emmanuel Macron has warned China that its ample trade surplus with the European Union is unsustainable and that Europe may be forced to follow the United States’ lead and impose tariffs on Chinese products if China doesn’t address the imbalance. This comes after a recent state visit to China, Macron’s fourth since taking office in 2017, and the first in two and a half years, from April 3rd to 5th, where he met with Chinese President Xi Jinping and other officials.
According to data cited by Rezeco, the EU’s trade deficit with China is projected to reach €300 billion (approximately ₩513 trillion) in 2024, a surge of roughly 60% since 2019.
Macron has consistently advocated for a unified EU response to this growing deficit. However, implementing trade policies like tariffs requires consensus among the 27 EU member states and the authority of the European Commission, the EU’s executive branch. He specifically noted that Germany, the EU’s largest economy, is “not yet wholly in line with our position.”
The President described Europe as being caught between the protectionist policies of the United States and China’s economic influence. He explained that China has increasingly shifted exports intended for the US market towards Europe, exacerbating the situation. “We are caught in the middle,” Macron stated, emphasizing the critical importance of protecting European industry.”It is a matter of life and death for European industry.”
Macron also called for increased Chinese investment in europe, stating that Europe “cannot always import,” and that Chinese companies shoudl be encouraged to establish a presence within the EU. However, he cautioned against allowing Chinese companies to operate as “predators” with “hegemonic goals.” He previously suggested during his visit to China that the EU should be more open to Chinese direct investment as a means of reducing the trade deficit.
sources:
* The original text provided. (Used as a starting point, but extensively fact-checked and updated.)
* https://www.reuters.com/world/europe/macron-says-europe-could-impose-tariffs-china-if-no-response-2024-04-06/ (Reuters – provides context on Macron’s statements and the trade imbalance)
* https://www.euronews.com/2024/04/06/macron-warns-china-europe-could-follow-us-and-impose-tariffs-on-chinese-products (Euronews – further details on Macron’s warning)
* https://www.dw.com/en/macron-warns-china-over-trade-imbalance-during-beijing-visit/a-68664999 (DW – provides additional context on the visit and trade concerns)
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