In China, Macron presses EU for united front on foreign takeovers
BEIJING: Europe should to be more united in protecting strategic assets from foreign takeovers if it wants Beijing’s respect, French President Emmanuel Macron said as he wrapped up a visit to China that brought no eye-catching trade deals.
The 40-year-old has deployed a mix of charm and threats on his first state visit since taking office in May.
Accompanied by 50 business leaders, he has sought to recalibrate bilateral relations and narrow a gaping trade deficit.
As president, Macron has pushed for the EU to screen foreign investments in its strategic sectors and, signalling French annoyance at China’s reluctance to open some of its domestic markets, that issue has been a focal point of the threeday visit.
On Wednesday, he sounded a warning to less wealthy EU states that have taken a softer line due to their perceived reliance on Chinese investment.
“Europe has often shown itself divided about China,” Macron told representatives of the French community in Beijing. “And China won’t respect a continent, a power, when some member states let their doors freely open.”
Foreign direct investment in the European Union traced back to mainland China has surged in recent years, to a record 35 billion euros (US$42 billion) in 2016 from 1.6 billion euros in 2010, according to the Mercator Institute for China Studies.
France, like Germany, has generally welcomed Chinese investment as a boost to its economy and an opportunity to expand into fast-growing Asian markets.
But the euro zone’s top two economies have been reluctant to cede control of strategic assets, notably in transport, defence, telecoms, tech and engineering – sectors in which China’s footprint is expanding fast.
The EU hopes negotiations on an investment pact with China will reach a ‘decisive stage’ this year, the bloc’s ambassador to China said separately, calling on Beijing to honour a pledge to open its economy to the world.
Macron did not say which EU countries he thought should needed to shield their assets more vigorously but, after struggling under strict austerity rules imposed by its European partners, Greece for one has embraced China’s cash.
It sold a majority stake in Piraeus port, the country’s largest, to China’s COSCO Shipping in 2016. — Reuters