The entire global economy is under threat from a glut of cheap Chinese exports, French Finance Minister Bruno Le Maire said, amid a barrage of joint criticism from the G7.
“We have a problem with an economic model in which China produces more and more cheaper industrial devices, because this could pose a threat not only to the EU, not only to the US, but also to the global world economy,” Le Maire said. in his report. Bloomberg Television interview. “We need to solve this problem.”
Leading industrialized countries are uniting in a tougher, more cooperative fight against overcapacity in China, which they say threatens their domestic producers.
G-7 Finance Leaders Meeting in Stresa, Italy named the country by name, as they agreed to “respond to harmful practices” and “consider taking action to ensure a level playing field.” The words marked a departure from the sparse, more neutral trade language they typically use in official communications.
Their announcement followed Washington’s announcement on Friday that President Joe Biden would reimpose tariffs on hundreds of goods imported from China. Meanwhile, the EU is nearing the end of an investigation into electric vehicle subsidies that will likely lead to protective measures against Chinese car exports.
Potential EU fees are expected to be significantly lower than those in the US and are based on a different approach under World Trade Organization rules and procedures.
Le Maire told the G7 meeting that member countries needed to strengthen information exchange and conduct a common assessment of China’s industrial practices. However, he insisted the EU has all the necessary tools to restore a level playing field.
“Make no mistake about the determination of the EU countries and France,” Le Maire said.
Collaboration with artificial intelligence
The French minister said he was committed to preserving the benefits of years of government policy and investment to build out its own industry and technology sectors.
A key priority is artificial intelligence, an area in which France intends to maintain its leadership in Europe. This attracted foreign capital, and Microsoft announced 4 billion euros invested in French cloud and AI infrastructure this month. Paris-based Mistral AI also announced a partnership with Microsoft in February.
Asked whether he could use government vetting rules to prevent foreign investors taking over French tech companies, Le Maire said the challenge now was to increase cooperation rather than block it.
“We will look at what options there are for cooperation between Mistral and Microsoft,” Le Maire said. “Microsoft is currently investing in France, opening data centers in France, and Microsoft’s investment in France is welcome.”