French President Emmanuel Macron has declared that European industry stands at a critical juncture, describing it as a “life or death” situation. The continent faces immense pressure from an increasingly competitive China and a protectionist United States, prompting Macron to call for China to step in with much-needed foreign investment.
In an interview with the Les Echos financial newspaper, following his fourth official visit to Beijing since 2018, Macron emphasized the necessity for China to replicate the investment strategies that Europeans employed in China two decades ago. He stated,
“The Chinese have to do in Europe what the Europeans did 25 years ago by investing in China.”
Concerning trade imbalances
The current trade dynamic is stark; Europe recorded a €306 billion trade deficit with China in 2024, with exports amounting to approximately €213 billion against imports of €519 billion. Macron pointed out,
“I am trying to explain to the Chinese that their trade surplus is untenable and that they are killing their own customers, mainly by not importing much from us.”
This imbalance extends to investment, where Europe boasts a €232 billion investment stock in China, while China’s investment in Europe is only €65 billion, based on data for 2023.
Macron acknowledged China’s strengths in certain sectors but stressed the need for a shift in dynamics. He remarked,
“We recognize that they are very good in some areas. But we can’t be constantly importing.”
He urged Chinese enterprises to establish a presence in Europe, akin to the way French companies like EDF and Airbus have engaged in the Chinese market, generating value and opportunities for Europe.
A cautious approach to investment
While advocating for increased Chinese investment, Macron cautioned that such investments should not be predatory. He clarified that this would involve avoiding strategies that seek to establish dominance or create dependency within European markets.
Looking forward, France is set to assume the presidency of the G7 group of major advanced economies on January 1, 2026, with plans to host the G7 summit in Evian, France, in June. Reports suggest that Macron may extend an invitation to Chinese President Xi Jinping, aiming to leverage France’s presidency to rejuvenate the G7’s global influence.
In his interview, Macron also hinted at a potential shift in policy, warning that Europe might have to impose customs duties on Chinese imports, echoing actions taken by the U.S. under former President Donald Trump. He criticized Beijing for undermining Europe’s innovation and industrial framework but favored a collaborative approach, proposing a mutual de-escalation of aggressive policies, including the limitation of semiconductor machine exports from Europe and rare earth export restrictions from China.