Macron calls for de-escalation in China-US tensions, backs ‘de-risking’ strategy
- In his Davos speech, the French president stresses the need for EU to reduce its dependence on both major powers
- Macron’s address includes proposals for greater capital market union and more investment for Europe
“Our strategy vis-à-vis China in this context is not a decoupling strategy, but a de-risking strategy,” he said, referring to moves aimed at restructuring global supply chains that are now often centred in China.
Talk of “decoupling” from China, which emerged during the US-China trade war from 2018, has grown stronger in the wake of the Covid-19 pandemic and increasing geopolitical tension.
A day earlier, in his speech at Davos, Chinese Premier Li Qiang criticised attempts to “disrupt or undermine” the current global industrial supply chain and called for “effective safeguarding of the stability and smooth flow” of the current system.
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Premier Li Qiang plays up China’s economic prospects at World Economic Forum’s ‘Summer Davos’
To “block or break” the supply chain would be both inefficient and full of economic and social risk, Li said.
Macron said the de-risking strategy is “totally accepted by China” and a “fair” way to cooperate while preventing the EU “from being too … dependent on some critical part of our value chain”.
“But let’s be clear. It’s not good for Europe as well to be totally dependent on the US on some part of the value chain,” he told the forum.
Macron reiterated that the European Union project is about not being dependent on the big powers and said its autonomy was not only critical to preserving jobs and promoting growth for the continent, but also “absolutely critical to preserve our voice in this world”.
The EU needs to be able to deal with Asia, Africa and other countries as a European, and “that’s not as somebody being seen as totally dependent on the US”, he said.
Macron also announced some of his domestic reform plans for the year ahead and suggested a joint debt “‘Eurobond” for more European public investment and to “deepen the capital markets union”.
EU firms are reluctant to speak up on China as Brussels tries to de-risk
He encouraged more investment in “future” industries like artificial intelligence, saying the US and China have been investing heavily in the technology.
“We have to avoid any escalation in tension. This is why I’m part of those who are now pushing for de-escalation in tension between China and the US,” Macron told the forum.
