Panicked Macron heads to China to protect EU from impact of US trade war truce

The French President will be among several world leaders attending next week’s China International Import Expo (CIIE) in Shangai and will try to get significant trade talks underway. China hopes to use the giant import fair showcase its free trade credentials, temper criticism of its policies and deepen its global economic influence as relations with Washington show signs of improvement.

But EU leaders fear Europe will become a target for Trump’s tariffs if the US seals a peace deal with the Chinese.

An aide for Mr Macron: “We don’t want Europe to be a collateral victim of a US-China trade deal.

“Hence the necessity of moving forward on bilateral negotiations between the EU and China now.”

Mr Trump has used tariffs to force China into making a deal and the EU’s fears he will target sectors such as the auto industry to bludgeon similar concessions out of Brussels.

Europe saw Mr Trump’s aggressive tactics as a chance to strengthen ties with China and Mr Macron had previously raised concerns about the impact a Washington-Beijing deal could have on the EU.

The French President said he welcomed a US-China truce but also insisted Europe’s interests would have to be taken into account.

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He said: “We will look out to make sure that it is good for the world, and that our parameters are taken into consideration, which was part of our conversations at the G7.”

Mr Macron will kick off his 48-hour official visit at the CIIE before holding a day of bilateral talks in Beijing although the trip is not without controversy.

Some EU diplomats believe Mr Macron’s invitation to the Shanghai trade fair is simply a propaganda stunt aimed at garnering EU support in the conflict with Washington.

One official wondered out loud why the French leader had chosen to go on the trip EU counterparts had stopped short of taking sides in the trade war.

But Paris believes engagement with China is essential and pointed out incoming European Trade Commissioner Phil Hogan, German Minister of Education and Research Anja Karliczek and representatives of German businesses were also going to Shanghai.

The Macron aide said: “Our point is that since this expo aims to show the opening of China to international markets then let’s show it through market access in the field of agro-food business, by progress on the two priority deals between the EU and China, let’s show it through commitments in terms of transparency, dialogue within the WTO.”

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Chinese President Xi Jinping will deliver opening remarks at the CIIE in a sign of how important the event is seen by the government.

Zhu Ning, a professor of finance at Tsinghua University, said: “China is trying to play a more important role with the WTO, especially given the US disinterest, or potential interest in leaving the WTO altogether.

“I think China is working more with multilateral organisations and bilaterally with individual countries trying to improve its own influence globally and trying to shape the global trade and financial order going forward.”

Washington said the US sought “a fair, reciprocal, and balanced trade relationship with China” but has no plans for “high-level government participation” in the event.

A White House spokesman said: “We urge Beijing to adhere to the market-based rules and norms of the international trade system.

“This would be good for the United States, for the world, and for the Chinese people.”

source: express.co.uk