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SCMP Editorial

Editorial | Macron faces a tough but necessary balancing act as he visits China

While trade disagreements have hampered ties between Beijing and Paris, Macron’s trip is important for the development of economic and political ties

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French President Emmanuel Macron delivers a speech during the opening of a summit on artificial intelligence in Paris, France, on November 25. Photo: EPA

Over the past decade, the relationship between the European Union and China has changed from solid to one fraught with concerns. It was once characterised by frequent high-level visits to China, notably by former German chancellor Angela Merkel and French leaders, underscoring active bilateral engagement.

When French President Emmanuel Macron arrives on Wednesday, things will not be the same. Central to escalating concern is the so-called Chinese “overcapacity” issue, when the real issue is that China is climbing up the value chain to become more competitive with, than complementary to, France’s economy. This is a shift in the economic landscape, as Europe finds itself becoming a market for Chinese goods rather than a supplier of high-end products. This shift is playing out against the backdrop of the Ukraine war and geopolitical tension. It is the challenging context of Macron’s visit, exacerbated by increasing pressure on Europe from the US.
Historically, France’s exports to China, apart from luxury goods, have been dominated by aviation and energy, or Airbus and nuclear technology. France has supplied technology for China’s next-generation nuclear power plants. Now it faces competition in the sector from rapid Chinese advancements. This raises concerns in Paris, as France faces diminishing technological advantage.
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Politically, the relationship faces hurdles. Macron’s visit is not expected to reset it overnight. He is due to have talks with President Xi Jinping in the southwestern city of Chengdu, a shining example of economic and cultural development of inland areas. China’s strategic use of soft power has increasingly focused on showcasing its cities as cultural and economic powerhouses. Chengdu has emerged as a key player in this diplomatic narrative, particularly for international visits such as Macron’s. It is a way for China to use soft power to engage France and for Macron to get a better understanding of China that may ease suspicion on both sides.

China has no intention to squeeze Europe out of China’s market but it also wants the Europeans to open their markets to China. So Macron faces a tough balancing job, but his trip is still important for the constructive development of economic and political relations.

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