French Minister of Economy Opposes Economic Decoupling from China

In a recent press conference held at the French embassy in Beijing, Bruno Le Maire, the French Minister of Economy, expressed his opposition to the idea of economic decoupling from China. He stated that decoupling is an illusion and it is impossible to sever all ties between the American and European economies and that of China.

The Strategic Goal of Reducing Economic Dependence

Le Maire clarified that the concept of risk reduction does not imply that China is a risk. Rather, it means that France wants to be more independent and avoid being overly dependent on specific components, as was evident during the Covid-19 crisis.

The minister's remarks align with the strategic goal of several Western countries, including Germany, to reduce their economic dependence on China. Germany, for instance, views China as its top trading partner and a vital market for its automotive industry. Similarly, some US officials have also advocated for reducing economic ties with China amidst tensions between the two countries in recent years.

Economic Decoupling as an Illusion

However, Janet Yellen, the US Secretary of the Treasury, during her visit to China in early July, also deemed economic decoupling between the US and China as practically impossible due to the latter's significance in the global economy. The Chinese Prime Minister, Li Qiang, has also dismissed the idea of decoupling as a false proposition in an interconnected world.

During his visit to China, Le Maire attended the high-level economic and financial dialogue between France and China, which focuses on strategic issues. He will also be traveling to Shenzhen, often referred to as the "Silicon Valley of China," where he will meet with Chinese investors and business leaders. One of the key discussions will be with the CEO of Chinese automaker BYD, who is considering opening an electric vehicle factory in Europe.

Words of the day

decoupling : désolidarisation

dependence : dépendance