Key Points
- French President Macron is urging the EU to consider using its “anti-coercion” trade weapon against China.
- The call comes in response to China’s plan to restrict exports of critical raw materials. These materials are vital for many European industries, from EVs to defense.
- The EU’s “anti-coercion instrument” is a powerful tool designed to retaliate against economic pressure.
- Using the tool would be a major escalation, so for now, the EU is still seeking a diplomatic solution.
French President Emmanuel Macron is pushing European Union leaders to consider using the bloc’s most powerful trade weapon against China. His call to action comes in response to Beijing’s recent plan to tighten its control over exports of rare earth and other critical materials. This move could devastate European industries.
At a recent EU summit, Macron said leaders need to weigh all their options, including the EU’s “anti-coercion instrument” (ACI). This powerful tool, which has never been used before, was designed to hit back against countries that use trade as a weapon to pressure the EU. “This is economic coercion,” Macron said, “and we need to be able to respond.”
China’s planned export restrictions are a massive threat. The materials in question are essential for everything from electric car batteries to advanced defense systems, and Europe is heavily reliant on Chinese supplies.
While German Chancellor Friedrich Merz confirmed that the ACI was discussed, no decision has been made. The European Commission is currently working on a range of options, including a list of potential trade measures to boost its negotiating leverage with Beijing.
Using the ACI would be a major escalation of tensions with China, something many in the EU are hesitant to do. The bloc’s trade chief said this week that “we have no interest in escalation,” but he also stressed that a “prompt resolution is essential.”
For now, Europe is trying to find a diplomatic solution, but Macron’s comments are a clear sign that it is also preparing for a tougher fight.
