China to Increase Trade With France In Face of U.S. Trade War

In face of recent developments regarding the ongoing trade wars between the U.S., China, and its G7 allies, with the U.S. announcing restrictions on Chinese investment, the targeted countries have decided to take retaliatory actions by working together. China has stated that it plans to purchase more farm produce from France, thereby strengthening its ties with the E.U. This action may be part of an attempt to dissuade the U.S. from launching a full-on trade war.

The announcement regarding the deal with France was made by Chinese Premier Li Keqiang.

Li Keqiang also told French Prime Minister Edouard Philippe that Beijing is interested in purchasing more French aircraft, a project that has been in discussion since early this year.

In a joint news conference, the Premier addressed the aircraft negotiations. He stated:

“I explained to Mr Prime Minister that in recent years we have bought quite a lot of passenger aircraft, and there needs to be a period to digest this. In spite of this, we are still willing to strengthen cooperation with France’s Airbus.”

China’s negotiations with France come shortly after the disastrous G7 summit earlier this month. During the course of the summit, President Donald Trump not only left early but engaged in harsh rhetoric against Canada’s Prime Minister Justin Trudeau. All leaders involved condemned Trump’s actions, and several nations began to look into further procedures that will not include the United States.

Notably, German Chancellor Angela Merkel called Trump’s actions “depressing” and “sobering,” and stated that the E.U. is prepared to retaliate with tariffs against the United States if the trade wars escalate. Merkel confirmed that, while E.U.-U.S. relations have not completely deteriorated at present, if its trade wars with China continue, the E.U. will no longer consider the United States to be an economic partner or rely on it for their welfare. The recent China-France negotiations demonstrate this approach.

Li openly stated that both China and France, alongside the rest of the E.U., are attempting to work against the U.S.’ projects for trade wars. Li also emphasized that China is open to negotiation and communication with the Trump administration.

He said:

“We believe that relevant frictions and disputes can be resolved via talks. There are no winners from fighting a trade war. All sides should join together to expand growth and not engage in putting up trade barriers or protectionism. This is good for nobody.”

China also signed an agreement during the meeting with France, promising to purchase French beef despite the recent tariffs on U.S. shipments.

China’s deal with France occurred after rumors began to circulate that the U.S. Treasury Department planned to restrain Chinese investment in the U.S., framing Chinese investors as a national security threat. Although a proper announcement is set to occur next week, White House officials have tried to both deny and downplay the investment restraints. President Trump’s main economic adviser, Peter Navarro, stated that the restraints would not apply only to China, but to all countries “trying to steal our technology.” He had also stated that these plans were not immediate and would not come in the near future.

However, this has explicitly contradicted President Trump’s previous statement that Treasury Secretary Steven Mnuchin must work to combat Chinese investment as part of his trade wars.

Trump has also repeatedly stated in rallies and press conferences that:

“the United States will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology.”

Featured Image via Wikipedia