Facing an expanding trade deficit with China, Germany is aligning its approach with France to address economic challenges from Beijing. At the 2026 Franco-German Ministerial Council, leaders from both countries presented a united front, planning to formalize their cooperation in a joint roadmap due by September.

German Chancellor Friedrich Merz emphasized the importance of Franco-German collaboration amid multiple threats, stating, “Our work between Germany and France is indispensable at a time when Russia threatens our security, when the People’s Republic of China challenges our economy, and when the transatlantic partnership has lost its self-evident character.”

French President Emmanuel Macron described the discussion as highly convergent on China-related issues, while cautioning that neither country is anti-China. However, he highlighted the economic impact, noting that Europe’s trade deficit with China grows by €1 billion (US$1.14 billion) daily, resulting in thousands of lost jobs.

Both nations called for the swift and systematic use of the EU’s existing trade tools and pledged to urge Brussels to submit concrete proposals to strengthen trade defense mechanisms, industrial policy, and economic security.

This shift marks a significant alignment between the EU’s two largest economies in response to China’s economic influence, placing it alongside other major geopolitical concerns such as Russia’s war in Ukraine and the evolving transatlantic relationship.

Sources

South China Morning Post World