French President Visits China: Avoid Being a Loser!

Mr. Macron's second trip to China, starting from November 4, is considered a trip with a heavy responsibility not only to protect the interests of France but also of Europe. Not only seeking bilateral trade cooperation agreements, President Macron also wants assurances that Europe will not become the loser and suffer heavy losses from the US-China trade war!

Turn challenges into opportunities

Throughout the US-China trade war, not only France but also European leaders have been in a state of constant anxiety, that this bloc will become the most heavily affected. Facing a President Donald Trump with an “America First” policy, Europe understands that, even with allies, Trump is not afraid. Especially in the case that a trade agreement is reached between the US and China in the near future, in which, Europe’s interests will not be taken into account.

Therefore, instead of being fearful, European countries have implicitly turned US-China tensions into opportunities to expand cooperation with China. France, as one of the leading European countries, is actively implementing this strategy. French President Macron's visit to China this time also covers the goals and motivations of economic and trade cooperation. The delegation accompanying President Macron this time is 30 businesses from many fields.

President Macron speaks in Xi'an on January 8. Photo: Reuters

A notable destination is that President Macron will attend the China International Import Expo in Shanghai. The fair attracts 63 countries and more than 3,000 companies from about 150 countries and regions. This will be an opportunity for French businesses to seek contracts with suitable partners.

In addition, it is expected that France and China will also sign about 30-40 cooperation agreements on a range of issues, from economics and trade to agriculture, tourism, energy, aviation, health, etc. Currently, China is France's 7th largest export market and 2nd largest import market.

Both sides are also optimistic about reaching a China-EU investment agreement through negotiations. As you may recall, President Macron played a key role in drafting the EU’s new China strategy. He also made a notable speech in Xi’an in 2018, in which he asserted that Beijing’s approach to the European market through the Belt and Road Initiative cannot be a “one-way street.”

The 21st China-European Union (EU) Summit took place in April 2019 in Brussels (Belgium).

Therefore, at the 21st China-EU Summit held in Brussels (Belgium) in April this year, the two sides issued a Joint Statement with a commitment to make the necessary decisive progress to reach a higher-level China-EU Investment Agreement by 2020. As for the French President, Mr. Macron has been recognized as having a pragmatic foreign policy in the China-EU relationship. Despite being an ally of the United States, France wants to strengthen relations with Beijing, thereby creating a more level playing field for European businesses in China. This has been demonstrated by the fact that in recent times, France has repeatedly called on Beijing to further open its market, focusing on transparency and ending unfair subsidies for domestic businesses.

Is France naive?

While France seeks bilateral cooperation agreements, enhances its political position and affirms a united Europe in the “mess” of the US-China trade war, Beijing also has its own strategic goals. The grand reception, a private dinner and a meeting between the French President and President Xi Jinping during this visit are signaling an important position that Beijing gives to Paris. Clearly, diversifying cooperative relationships is the way China has been promoting to minimize the damage caused by the trade war with the US. Beijing also wants to use France to fulfill its commitment to multilateralism and send a message to President Donald Trump’s “America First” policy…

French President Emmanuel Macron and Chinese President Xi Jinping. Photo: Reuters

However, President Macron also needs to recognize the fact that, until now, many high-tech industries related to France's defense sector have still been limited in cooperation due to the EU arms embargo imposed on China since 1989.

In addition, many French and European businesses have been forced to withdraw from this large Asian market due to difficult conditions in China. In addition, experts say that France is also being cautious about a "technological attack" by China to take over the leading position in technology that the US currently holds. According to many sources, French intelligence in recent years has discovered many cases of espionage and hackers in large French corporations originating from or related to China...

Although he has affirmed that he will not “boycott” Huawei, it is clear that technology hackers are one of the issues that French President Macron needs to pay attention to in his relationship with China. Photo: Bloomberg

With these realities and barriers, experts say that, apart from the main issues of trade and economic cooperation or a few other small agreements, public opinion should not expect too much from the results of French President Macron’s visit to China this time. Because certainly, the two sides will, because of their common concerns of economics and trade, “avoid” a series of issues such as human rights, military or hackers…

However, there are also other opinions that France and Europe seem to be too "naive" to think that China can wholeheartedly cooperate to fight against the US. Although President Macron affirmed in a statement that France and Europe know what to do in their relationship with China and are not "naive" as people think.

But clearly, France's national interests and pragmatic foreign policy will need time to prove results. At least until the US-China trade war gradually comes to an end!