Macron Urges EU to Consider Using Strongest Trade Weapon Against China Amid Rising Tensions

French President Emmanuel Macron has called on the European Union to weigh using its most powerful trade defence mechanism against China if ongoing diplomatic efforts fail to resolve growing economic frictions. Speaking at a leaders’ summit in Brussels, Macron said Europe must be ready to defend its industrial and strategic interests by deploying the bloc’s newly established anti-coercion instrument (ACI) — often described as the EU’s “big bazooka” trade tool.

The ACI, introduced in 2023, allows the EU to respond collectively to economic coercion from non-EU countries through measures such as tariffs, investment restrictions, or procurement bans. It was designed as a deterrent against foreign governments attempting to pressure the bloc by leveraging trade or supply chains. Though the mechanism has not yet been used, Macron suggested that the situation with China could justify its activation.

The French president’s comments come amid concerns over Beijing’s reported plans to tighten export controls on critical raw materials, including rare earth elements vital to Europe’s technology, green energy, and defence sectors. Such restrictions could severely disrupt manufacturing and undermine the EU’s long-term industrial competitiveness. Macron warned that Europe “cannot remain vulnerable to coercive practices” and must show unity and resolve.

European officials have been debating how to respond to China’s actions, balancing economic pragmatism with strategic caution. While some member states, including Germany, advocate continued dialogue to avoid escalation, others back Macron’s call for a tougher stance to protect the EU’s supply chain security and strategic autonomy.

The European Commission is reportedly preparing contingency plans outlining possible trade countermeasures should negotiations with Beijing fail. These could include limiting Chinese access to European markets or targeting sectors linked to sensitive technologies.

Macron’s remarks reflect a broader shift in EU thinking, as the bloc seeks to reduce dependence on China for key raw materials and diversify partnerships in Africa and Latin America. European leaders have also been increasingly aligned with the United States in calling out Beijing’s economic and industrial policies.

While Brussels maintains that dialogue remains its preferred approach, Macron’s intervention marks a clear warning that the EU will not hesitate to act decisively if its strategic interests are threatened. Analysts say the decision to invoke the ACI would represent a major escalation in Europe-China relations.