Editorial: France and Germany are personally lowering the banner of free trade

Introduction: France and Germany are personally lowering the banner of free trade that they have upheld for half a century, which is a betrayal and denial of themselves. Do not do to others what you do not want done to yourself, and use what you opposed back then as a weapon today. Europe is tarnishing its label as a defender of multilateralism

According to media reports, France and Germany submitted an informal document to the European Commission on October 5th, calling for the strengthening of EU trade defense measures, granting the Commission new powers to restrict or even cancel access to the European single market for countries that allegedly disrupt trade relations, and establishing mechanisms to promote supply chain "de reliance". Although the document did not specifically mention China, anyone with discerning eyes can see who it is targeting. The joint efforts of France and Germany, the "twin engines" of the European Union, are leading Europe down the path of protectionism.

France and Germany are personally lowering the banner of free trade that they have upheld for half a century, which is a betrayal and denial of themselves. Europe is the birthplace of modern free trade concepts and the most steadfast builder of the post-war multilateral trading system. From the customs union to the single market, from rounds of multilateral negotiations to the global circulation of the euro, openness has always been the foundation of European economic prosperity. By 2025, the EU's trade surplus in goods will reach 128 billion euros; In June of this year, German Chancellor Merkel stated in the Bundestag that "fair and open global trade benefits Europe more than any other continent. The words are still ringing in his ears, but four months later he signed a joint document claiming that "existing trade protection tools are no longer sufficient". If it fits, use it; if it doesn't fit, discard it. Rules have become tools that can be used at will - this is a self destructive sign.

The EU is transforming from a victim of unilateralism to the perpetrator it once opposed. In 1998, the European Community brought the compliance issue of the US "Section 301" to the World Trade Organization, insisting that unilateral retaliation must be placed under multilateral authorization. This case is still regarded as a landmark precedent for constraining unilateralism to this day. Today, 28 years later, the plaintiffs of that year began to create their own European version of the "301", using the "reverse qualified majority" mechanism to make the European Commission's restrictive measures default and difficult for member states to stop. German officials shamelessly referred to it as a "second strike weapon" to deal with the escalation of the trade war. Do not do to others what you do not want done to yourself, and use what you opposed back then as a weapon today. Europe is tarnishing its reputation as a defender of multilateralism.

France and Germany's shift towards protectionism is essentially packaging their structural difficulties as "external threats". High energy prices, heavy regulatory costs, and slow innovation iteration are the real internal factors causing the decline in European industrial competitiveness. A German survey shows that the investment willingness of small and medium-sized enterprises in Germany has dropped to the lowest level since statistics began in 1995. Blaming the arrears of internal reforms onto others and using trade barriers to compensate for lost cost advantages is not so much an awakening as an evasion. Germany has transformed from a "brake" on its tough trade measures with China to today's "promoter", which is a "cure for internal problems" and no longer dares to face its own problems directly.

The bill of protectionism is ultimately paid by the issuer themselves. The latest survey by the German Chamber of Commerce in China shows that about 33% of surveyed companies believe that if substantive results cannot be achieved in the EU China trade negotiations, their business in China will be significantly affected; The sales volume of French cognac has dropped from 230 million bottles in 2023 to 140 million bottles, which is the direct consequence of the EU's imposition of tariffs on electric vehicles in China leading to countermeasures. The lessons learned from the US "301" tariffs are equally clear - importers bear almost all the costs, and the output growth of protected industries is minimal. Tariffs are imposed on others, but the cost is recorded under one's own name. German companies, French wineries, and European consumers will all find their names on this bill.

The ball is still in the EU half, the way out is at the negotiating table rather than in the toolbox. The deep integration of China Europe industrial and supply chains, and the essence of economic and trade relations is mutual benefit and win-win outcomes. The interdependence between China and Europe is not a risk, the integration of interests is not a threat, and open cooperation is the right path for development. EU Trade Commissioner Shevchenko is about to visit China, and the ongoing China EU trade and investment consultations indicate that the door to dialogue has not been closed. I hope that France and Germany, as important global economies, can adhere to open cooperation and free trade, abide by WTO rules, and not encourage the EU to use protectionist tools at will, let alone politicize and securitize economic and trade issues. Protectionism cannot enhance competitiveness, and decoupling will only harm others and benefit oneself; Taking the wrong path in the wrong way will ultimately backfire on oneself.