China, France agree trade wars not profitable

China’s top diplomat Wang Yi told French President Emmanuel Macron’s diplomatic adviser Emmanuel Bonner that a trade war between China and the European Union (EU) would be a ‘lose-lose’ proposition.

Wang and Bonner were meeting in Beijing for the 26th China-France Strategic Dialogue, 26th in the series, on Saturday. Wang said, “A trade war will only lead to a ‘lose-lose’ situation. China is the staunchest defender of the free trade system and opposes the politicisation of economic and trade issues.”

The EU had imposed tariffs on China’s electric vehicles (EV) on the charge that they received state subsidies. German auto-makers were worried because luxury German cars like Mercedes had a market in China, and German automakers were also manufacturing cars in China. The EU’s hostility towards China is seen as more than economic.

It is felt that the EU is adopting the same hostile position towards China as it is towards Russia, which has ideological overtones. China is looking to impose tariffs on EU imports like dairy.

Among the European countries, France had always followed a separate policy towards both Russia and China, and this goes back to the 1950s and 1960s when Charles De Gaulle was at the helm, and he did not want France’s foreign policies to be influenced by the Americans.

The Americans even today follow a hostile attitude towards China, which is partly economic, but also political. America sees China as an emerging global power and it is opposed to the idea both in terms of balance of power and also in terms of ideology. America’s position is that it is a democracy and it is opposed to the one-party autocracy of the Chinese, ruled as they are by the communist party.

China is of the view that China has its own system of governance and that the West cannot demand that Western democratic norms should be followed in China as well. France has been sensitive to Chinese concerns. It is speculated that Bonner’s visit to China is a prelude to Macron’s visit to Beijing next year.

China is quite aware of the fact that America wants to isolate China in the global system, and Beijing is trying to deal with EU as a separate entity which remains immune to American pressures. That is why, Beijing wants to nudge and prod, and even pressurise to the extent that it possible, to keep trade issues between China and the EU independent from the global power politics pursued by the Americans. And it is working hard to woo friends like France to exert pressure on EU not to go the American way.

Wang elaborated China’s position and viewpoint. He said, “China and France should firmly support an international system centred on the United Nations, build an equal and orderly multipolar world, promote international unity and cooperation, oppose division and confrontation , and especially abandon the Cold War mentality and zero-sum games.”

China is countering the American view of the world. France is the most likely country in Europe who could consider friendly relations with China in the face of American opposition.

Bonner said that France valued China’s friendship and sought to maintain high-level exchanges with Beijing, and expand cooperation in trade, investment, artificial intelligence, nuclear energy, aerospace, agricultural food products and green development.

France wants to develop its own network with the Asian and African countries. If America chooses to boycott China, France sees as opportunity for itself in the world’s second largest economy. It is doubtful however whether France can influence other EU members to adopt a friendly stance towards China. But if France were to gain from its China connection, then the other EU members are sure to reconsider their stance towards Beijing.