France and Germany set 'roadmap' on trade deficit with China

French

Friday, July 17, 2026 19:28 | 2 minutes read

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German Chancellor Friedrich Merz and French President Emmanuel Macron agreed on Friday that their countries will announce in September a joint 'roadmap' on trade relations with China, accused of unfair competition with European industry through its currency and subsidies.

Macron said at a press conference with Merz following a meeting of the Franco-German Defense and Security Council and the Joint Ministerial Council in the town of Brühl near Cologne in western Germany that the economic, finance and foreign ministers of the two countries are working on this joint plan.

Macron also called for 'starting a dialogue with China on the issue of exchange rates and opening financial markets' to correct 'imbalances'. He considered that China 'does not respect the rules of the game'.

The European Union's trade deficit with China has exceeded one billion euros per day. Europe attributes this largely to Beijing's unfair practices.

Read also: Europe tries to counter China without launching a new trade war

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Merz hoped that 'a new trade conflict with China would not break out,' but expressed his desire 'for an open dialogue on these imbalances,' considering that they occur 'at the expense' of European industry and its job opportunities.

He added that China has no interest in any conflict given the 'intertwining of interests' between it and Europe.

The German chancellor had previously criticized Chinese monetary policy on Wednesday in front of journalists in Berlin, pointing to the 'negative' consequences for Germany due to 'very high imports, subsidized products, and ultimately through prices'.

Read also: 'Supporting all industries' boosts China's expansion in world markets.. and the bet on self-collapse

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Macron announced that he intends to pressure the European Commission to 'move much faster in using protection tools' for the continent's industries.

The European Union doubled tariffs on steel imports in July to protect its producers, especially those of Chinese origin.

Tariffs