Macron Urges EU to Use Trade Tool Against China Over Export Controls

French President Emmanuel Macron urged European Union leaders to consider using the bloc’s most powerful trade tool against China amid Beijing’s planned export controls on critical raw materials. Speaking at a summit in Brussels, Macron emphasized that the EU must explore all available options to counter economic coercion by China. According to sources familiar with the discussions, Macron highlighted that these controls on rare earths and other critical materials could have a major impact on Europe’s industry and security. The call for potential action underscores the EU’s growing concern over China’s trade policies and the strategic importance of safeguarding key industrial supplies.

Macron described the Chinese measures as “economic coercion” and said Europe must be ready to respond if diplomatic talks fail. China’s new export restrictions would require overseas exporters of goods containing rare earths sourced from China to obtain special licenses, affecting industries from electric vehicle batteries to defense manufacturing. European leaders, including German Chancellor Friedrich Merz, acknowledged the discussion of the EU’s anti-coercion instrument (ACI) but noted that no final decision has been taken yet. The potential deployment of the ACI reflects the EU’s determination to protect its trade interests while managing tensions with China.

The EU’s anti-coercion instrument, proposed but never used, is designed to deter and respond to deliberate coercive trade actions by third countries, including China. Measures under the tool could include tariffs, new taxes on tech companies, restrictions on investments, and limits on market access for Chinese firms. Macron’s call comes as the European Commission prepares a list of trade measures that could be deployed if negotiations with China do not yield a resolution. The EU is also developing strategies to secure alternative sources of critical materials to reduce dependency on China and protect the continent’s industrial stability.

China’s export restrictions have raised alarms across Europe due to their potential to disrupt key sectors. Macron stressed that the EU must act decisively to safeguard critical supplies and prevent economic vulnerability. Discussions at the Brussels summit emphasized the need for a balanced approach: Europe must assert its trade rights while avoiding unnecessary escalation. Macron’s stance signals France’s proactive approach within the EU to use the bloc’s most potent trade measures against China if needed.

EU Trade Chief Maros Sefcovic recently spoke with Chinese counterpart Wang Wentao, underlining that the EU seeks a prompt resolution without escalating tensions. While diplomatic efforts continue, Macron’s remarks indicate that the EU may deploy its most powerful trade tool against China as leverage to protect European industries. The situation highlights the growing strategic and economic friction between the EU and China, with European leaders ready to consider all options to ensure fair trade practices and safeguard critical resources.

The EU’s careful consideration of trade action against China reflects a broader effort to strengthen trade defenses, ensure supply chain security, and protect the continent’s industrial base. Macron’s push for potential deployment of the anti-coercion instrument reinforces the message that Europe is prepared to stand firm against coercive economic measures while seeking a balanced and sustainable resolution. The ongoing discussions underscore the EU’s commitment to maintaining its economic sovereignty and responding effectively to international trade challenges.