(July 17): Chancellor Friedrich Merz said widening trade imbalances between the European Union (EU) and China must be addressed as Germany and France aligned more closely on a firmer stance on the world’s No 2 economy.
  
Hosting a joint press conference with French President Emmanuel Macron outside the western German city of Cologne, Merz signalled that the ballooning trade deficit with China must be addressed — even as he reiterated that he wanted no new conflict with Beijing. Speaking in sharper terms, Macron warned that Europe is facing an “aggressive” trade war from China. 

“These imbalances are hurting our industry, and ultimately that cannot be in China’s interest either,” Merz told reporters alongside the French leader in Brühl, Germany. “We depend on one another.” 

Merz is increasingly open to backing a more forceful EU push against China, Bloomberg reported earlier, a shift that could be pivotal in setting a new policy to protect European industries. The EU sees China’s dominant economic position as an existential threat and is strategising how to reduce a trade deficit that now exceeds €360 billion (RM1.68 trillion).  

Macron, who noted the two countries had “never been so convergent on China,” said that he and Merz plan to agree on a new China roadmap by September. EU leaders have a planned meeting in October when they’re expected to discuss relations with Beijing. 

“We are living through a moment of challenge for both our countries and a highly unusual period,” Macron said. “Marked, of course, by a trade war — and by China’s increasingly aggressive trade practices.”

Uploaded by Felyx Teoh