France and Germany move to tackle EU’s growing trade deficit with China

Lead

France and Germany are pressing for a stronger European Union response to China's growing trade surplus and industrial overcapacity, as concerns mount over the impact on key European sectors. The push was elevated last week when French President Emmanuel Macron and German Chancellor Friedrich Merz agreed to draw up a "Franco-German roadmap" by September on how to respond to China's trade practices.

Coverage Comparison

Both RFI and the South China Morning Post report on the Franco-German initiative, but they frame it differently. RFI emphasizes the systemic nature of China's industrial rise, citing a recent French report warning of a "systemic shock" to Europe's manufacturing base. The South China Morning Post highlights Germany's shift in stance, noting that Chancellor Merz now ranks China's threat to Europe's economy alongside Russia's war in Ukraine and the waning transatlantic partnership.

Key Claims

According to a report by France's High Commission for Planning, titled "The Chinese steamroller - quantifying the systemic threat to Europe's industrial base," China's combination of scale, low production costs, heavy overcapacity, and rapid technological upgrading is reshaping global manufacturing and eroding Europe's competitiveness. The report warns that almost a quarter of EU exports are exposed to serious Chinese competition, and up to 55 percent of European manufacturing output—including cars, batteries, chemicals, and machinery—could be "vulnerable in the medium term if current trends continue."

RFI reports that the China-EU trade deficit stands at €360 billion a year in favor of China. Meanwhile, the South China Morning Post quotes Macron as saying that every day, Europe adds €1 billion to its trade deficit with China and loses thousands of jobs.

Macron and Merz jointly called for "swift and systematic use" of the EU's existing tools and pledged to press Brussels "to promptly submit concrete proposals on how to strengthen our trade defence toolbox, industrial policy as well as economic security," according to a joint statement. Macron noted that the two leaders had "never been so convergent on the question of China," but insisted that neither France nor Germany were anti-China.

The South China Morning Post reports that the joint roadmap is due by September at the request of Germany. After the Franco-German Ministerial Council, Merz told journalists: "Our work between Germany and France is indispensable at a time when Russia threatens our security, when the People's Republic of China challenges our economy, and when the transatlantic partnership has lost its self-evident character."