French President Emmanuel Macron signalled Europe’s openness to deeper cooperation with China, while making clear that Beijing will be expected to meet specific conditions.
“China is welcome, but what we need is more Chinese foreign direct investments in Europe, in some key sectors, to contribute to our growth, to transfer some technologies, and not just to export towards Europe, some devices or products which sometimes don’t have the same standards, or are much more subsidized, than the ones being produced in Europe,” Macron said.
The French president argued that the European Union remains one of the few major markets that is still largely open without strict competitive preconditions.
“Protection doesn’t mean protectionism,” he added. “Today’s Europeans are too naive. This is a unique market, open to everybody without checking level playing field. Nobody can access the Chinese markets as people are accessing the European market, for sure.”
Beijing pushes back
China’s foreign ministry responded swiftly to Macron’s remarks. Its spokesperson, Guo Jiakun, stressed that economic relations between the EU and China are mutually beneficial and rejected accusations of unfair state support for Chinese exports.
“The competitive advantage of Chinese products is not built on subsidies but is the combined result of huge research input, full market competition and the complete industrial chain,” Guo said.
“We never seek trade surplus; on top of being the world’s factory, we hope to be the world’s market too,” he added.
Similar arguments were made by Vice Premier He Lifeng, who said China plans to significantly strengthen domestic demand in the coming years.
“China has put domestic demand on top of its economic agenda this year,” He said. “And is working faster on a income-growth goal for both urban and rural residents, to vigorously boost consumption and make itself a consumption powerhouse on top of a manufacturing powerhouse.”