Chinese Vice Premier Zhang Guoqing will join a G7 video call on trade imbalances hosted by French President Emmanuel Macron, a rare engagement ahead of the G7 summit. The talks come as Europe faces a "second China shock" from a flood of Chinese high-tech exports. The EU is divided on a response, but Germany is signaling a tougher stance as its trade deficit with China hit €90 billion in 2025, contributing to heavy manufacturing job losses.
Macron G7 video conference
- ▪The video conference is titled "Global Convergence for Growth."
- ▪Emmanuel Macron stated the goal of the conference is to put the global economy back on a stronger growth path through international cooperation
- ▪The conference precedes the Group of Seven (G7) summit in Evian-les-Bains, France, scheduled for June 15-17
- ▪French President Emmanuel Macron will host a video conference on Thursday, June 11, 2026, to discuss global economic imbalances
- ▪Attendees of the video conference will include G7 nations, partner countries like India and South Korea, and the International Monetary Fund
Chinese Vice Premier Zhang attendance
- ▪Chinese Vice Premier Zhang Guoqing will attend the video conference on trade imbalances hosted by French President Emmanuel Macron
- ▪China's Ministry of Foreign Affairs announced Zhang Guoqing's participation in a statement on June 11, 2026
- ▪China's participation is an unusual instance of engagement with the G7, a group Beijing has historically criticized as unrepresentative
China's record trade surplus
- ▪European nations are alarmed by China's record trade surplus and its exports of high-tech products like electric vehicles and lithium-ion batteries
- ▪Analysts describe the influx of Chinese high-tech exports as a "second China shock," following its dominance of low-value industries in the 2000s
- ▪Germany's trade relationship with China shifted to a €90 billion deficit in 2025
- ▪China is blamed for job losses in Germany's manufacturing sector, which are occurring at a rate of roughly 10,000 per month
Chinese industrial policy defense
- ▪Beijing alleges that other countries are undermining global trade rules by imposing unilateral tariffs
- ▪China defends its industrial policy and rejects allegations that its exporters unfairly benefit from state subsidies
- ▪The European Commission is considering an "overcapacity instrument" to address state subsidies that lead to the accumulation of goods in strategic sectors
EU divisions on China tariffs
- ▪European Union nations are divided on how to approach China's trade practices
- ▪Germany has historically been reluctant to impose tariffs on China, one of its main export markets
- ▪Germany's position on China trade has started to shift due to sluggish growth and an industrial downturn exacerbated by Chinese competition
- ▪German Chancellor Friedrich Merz stated the EU must defend itself against unfair trade practices that distort competition
- ▪In a December meeting, Emmanuel Macron told Chinese President Xi Jinping that Europe would adopt protectionist measures if China did not help rebalance economic relations
Story comments
Loading comments…