French President Emmanuel Macron on Wednesday called for a de-escalation of tension between China and the United States as he addressed the World Economic Forum in Davos.
As he proposed further capital market union and urged more investment for Europe in his speech, Macron also stressed the need for the European Union to reduce its dependence on major powers and avoid escalating geopolitical tensions.
“Our strategy vis-à-vis China in this context is not a decoupling strategy, but a de-risking strategy,” he said, referring to moves aimed at restructuring global supply chains that are now often centred in China.
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Talks about “decoupling” from China, which emerged during the US-China trade war from 2018, have grown stronger in the wake of the Covid-19 pandemic and increasing geopolitical tension.
A day earlier, in his speech at Davos, Chinese Premier Li Qiang criticised attempts to “disrupt or undermine” the current global industrial supply chain and called for “effective safeguarding of the stability and smooth flow” of the current system.
To “block or break” the supply chain would be both inefficient and full of economic and social risk, Li said.
Macron said the de-risking strategy is “totally accepted by China” and a “fair” way to cooperate while preventing the EU “from being too ... dependent on some critical part of our value chain”.
“But let’s be clear. It’s not good for Europe as well to be totally dependent on the US on some part of the value chain,” he told the forum.
Macron reiterated that the European Union project is about not being dependent on the big powers and said its autonomy was not only critical to preserving jobs and promoting growth for the continent, but also “absolutely critical to preserve our voice in this world”.
The EU needs to be able to deal with Asia, Africa and other countries as a European, and “that’s not as somebody being seen as totally dependent on the US”, he said.
Macron also announced some of his domestic reform plans for the year ahead and suggested a joint debt “‘Eurobond” for more European public investment and to “deepen the capital markets union”.
EU firms are reluctant to speak up on China as Brussels tries to de-risk
He encouraged more investment in “future” industries like artificial intelligence, saying the US and China have been investing heavily in the technology.
“We have to avoid any escalation in tension. This is why I’m part of those who are now pushing for de-escalation in tension between China and the US,” Macron told the forum.
More from South China Morning Post:
- China’s economy hit target with 5.2% growth in 2023, Premier Li Qiang tells Davos forum
- China looks to boost EU imports, urges bloc to ease hi-tech export controls
- Chinese Premier Li Qiang, meeting Irish president in Dublin, calls for increased bilateral relations
- China and Switzerland to revive push to upgrade free-trade agreement
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