“In today's world, we need to protect our industry,” Lombard stated at an economic conference in France.
Noting China's strategy to capture more than 50% of global market capacity in many sectors, Lombard emphasized that this could seriously weaken European industry unless action is taken. The Finance Minister stated that although the European Union has already taken some measures in strategic sectors such as steel and automotive, these measures should be expanded to include products covered by Chinese imports.
French officials are concerned that China's growing export pressure could create new trade shocks for Europe. The Paris administration believes that US President Donald Trump's steps to reshape the global trade order could trigger additional tariffs on European exports. Lombard stated that these developments create a worrying picture for France.
The Chinese Ministry of Commerce's recent anti-dumping duties of up to 34.9% on brandy imported from the European Union are among the factors that increase tensions between the two sides. On the other hand, the European Union has been imposing tariffs of up to 45% on Chinese electric vehicles since last year.
Reports that the two-day leaders' summit between China and the European Union, scheduled to take place in Beijing at the end of July, may be shortened, highlighted the growing uncertainty in relations between the two sides.
French Industry Minister Marc Ferracci said at the same event that Europe needs to develop stronger defense mechanisms against Chinese imports. Ferracci stated that the excess flow of Chinese products into the European market has put serious pressure on strategic sectors such as steel and automotive, making them vulnerable to shocks.
The calls by both ministers signal that Europe's quest to protect its trade independence and local production will only intensify in the coming period.
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