Macron urges EU trade defenses as China 'floods' European market

French President Emmanuel Macron on Wednesday urged European leaders to strengthen trade defenses and boost investment, warning that the continent faces a "completely flooded" market from China alongside persistent fossil fuel dependencies that threaten economic competitiveness.

Trade imbalance

Speaking in Spain, Macron pressed for faster European Commission investigations and stronger trade defense instruments to protect industrial producers from unfair competition. "China has completely flooded the European market. For decades, we told ourselves: 'Wonderful, China is a huge market for us Europeans. We need China.' That is true. We transferred a great deal of technology, we sold a great deal, and we still do to some extent," he said. "Today, as we speak, we Europeans run a trade deficit with China of €1 billion every day," Macron added, accusing Beijing of heavily subsidizing companies and engaging in dumping to eliminate competitors.

Energy vulnerabilities

Macron highlighted Europe's ongoing energy insecurities, noting that decarbonization had not eliminated reliance on fossil fuels. "Today, we remain heavily dependent on fossil fuels. We can clearly see this with what is happening in the Strait of Hormuz, which poses a problem for our economic models. Even countries that have made substantial progress in decarbonisation, such as Spain and France, each following its own path, still have these dependencies," he stated. He called for stronger electricity interconnections across the continent alongside greater investment in artificial intelligence, quantum technology and defense.

Regulatory barriers

The French leader also urged easing financial rules to channel European savings into productive investment. "We Europeans have more savings than the Americans. Those savings go into our banks and insurance companies. Because we introduced extremely restrictive rules following a financial crisis that originated with American market participants, we overregulated our banks and insurers," Macron said. He called for a stronger EU budget and deeper integration of the single market to bolster competitiveness.