Macron’s Plan to Curb Chinese Trade Dominance Sparks Division Between Europe and the US
French President Emmanuel Macron devised a strategy at the G7 summit to take stringent action against China’s subsidized exports, which have significantly influenced global markets. However, the plan appears poised to fail as no concrete consensus emerged on curbing Chinese trade dominance even before the summit began. Although discussions on worldwide economic imbalances took place on the first day of the G7 meeting, which started Monday in Avian, France, they failed to yield any resolution. There are serious disagreements between European countries and the United States on how to manage China’s $1.2 trillion trade surplus. Meanwhile, China has largely ignored the G7 initiative.
President Macron chaired the ‘Global Economic Transition Summit’ aimed at reducing economic imbalances between G7 nations and Beijing. However, this event was solely a video conference rather than an in-person meeting, with only a limited number of G7 leaders participating, including German Chancellor Olaf Scholz and Canadian Prime Minister Justin Trudeau. China’s response showed a lack of seriousness toward the summit, sending only Vice Premier Zhang Guoqing, who holds no direct responsibility for trade policy, to engage. Zhang refrained from discussing economic imbalances and instead reiterated China’s established political agenda of “multilateralism.”
While the French presidential office (Élysée) claimed the virtual dialogue was a success, experts argue it was largely ceremonial. Agathe Demarest, an economist at the think tank T7, stated that China is unlikely to overhaul its entire economic model simply to appease France, and the G7 is not an appropriate platform to pressure China effectively. As G7 chair, France has deliberately avoided directly naming China, instead opting for neutral terms like “global economic imbalances.” Nonetheless, France remains the strongest voice within the European Union against the trade deficits caused by China.
Last year, Europe’s trade deficit with China reached €360 billion, a figure that has grown in the first quarter of 2026. Earlier this week, while addressing tire factory workers in his hometown of Amiens, President Macron emphasized the need for tariffs and Europe-first measures to combat Chinese competition. He framed these actions not as protectionism but as “fair security.” Even Germany’s Chancellor Olaf Scholz, who previously favored a softer approach due to concerns over impacting China’s economic transformation, has indicated willingness to take tougher measures this time. The European Commission has committed to addressing the unbalanced trade deficit with China, and this issue will be discussed by European leaders during a meeting in Brussels on Thursday immediately following the G7 summit. However, cooperation between Europe and the United States remains elusive on this matter. U.S. Trade Representative Katherine Tai welcomed European participation in America’s hardline stance against China but clarified that the U.S. is not willing to slow its own initiatives to harmonize diplomatic coordination with Europe.
The lack of mutual coordination between Europe and the United States threatens to reduce France’s ambitious agenda to restrict Chinese exports at the G7 summit to mere rhetoric.
