Paris: French President Emmanuel Macron has raised concerns that China's rapid industrial ascent is threatening the core of Europe's economic model, with the potential for the European Union to impose tariffs on Chinese imports if the existing trade imbalance is not addressed.

According to Anadolu Agency - English, Macron highlighted in an interview with Les Echos that Europe's trade deficit with China has reached alarming proportions, with China's surplus surpassing £300 billion ($349.5 billion) last year. He warned Chinese leaders that such a surplus is unsustainable, arguing that it undermines their customer base by significantly reducing imports from Europe. Macron emphasized that Europe would be compelled to take decisive actions, including imposing tariffs, if China fails to respond to this growing concern.

Macron expressed alarm that China's industrial practices are severely impacting Europe's established industrial and innovation sectors, particularly those centered around machine tools and the automotive industry. He voiced concerns over the compounded pressure from US protectionist measures under President Donald Trump, which have redirected Chinese exports towards Europe. This situation, he stated, has left Europe in a precarious position, making it crucial to address the imbalance to safeguard European industry.

Despite the challenges in forming a cohesive European stance, Macron noted that Germany has yet to fully align with France's perspective, though it recognizes the imbalance's gravity. He called for Europe to strengthen its competitiveness through regulatory simplification, market integration, innovation investment, and border protection, while urging China to stimulate domestic consumption and reduce market entry barriers.

Macron advocated for a shift in investment dynamics, encouraging Chinese companies to invest in Europe and foster mutual growth, while warning against predatory practices. He also suggested easing export restrictions on both sides to enhance cooperation, including addressing limits on semiconductor equipment and rare earths.

Ultimately, Macron stressed the importance of Europe leveraging its robust domestic market and adjusting monetary policies to foster growth and employment, ensuring the region remains a zone of monetary stability and credible investment.