Jack Ma's China homecoming heralds new era for Alibaba; Exclusive Insight: Macron's Visit to China Sheds Light on Changing World Landscape

The key countries and revelations from the Pentagon document leak; Asia risks losing most from rising geo-fragmentation: IMF; Renminbi’s share of trade finance doubles since start of Ukraine war

Welcome to this issue of The China Brief. Today is April 12, 2023. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.

And here is today’s exclusive insight:

Exclusive Insight: Macron's Visit to China Sheds Light on Changing World Landscape

From a French perspective, Macron's visit to China has created a subtle division between China and Russia. France fears that if China and Russia draw closer, it would lead to a political distance between France and China. Nonetheless, both France and China have the political power to balance each other, which creates a sense of equality between the two nations. As for future economic cooperation, there is immense potential for further development.

On the other hand, from China's viewpoint, the ongoing conflict between Russia and Ukraine offers China a foothold in Russia that is needed by Europe. This creates a solid wedge within the democratic camp led by the United States, which prevents or slows down the rapid decoupling process. Macron's visit highlights the differing demands of Western democratic nations concerning issues such as decoupling and the conflict between Russia and Ukraine, which are supported by economic interests.

Additionally, the diverging mainstream narratives in the US political arena and media regarding the Russia-Ukraine conflict suggest that the conflict is nearing an end.

This series explores the meticulous calculations made by France and China following the AUKUS agreement. It explains that this process indicates a significant change in the world's economic and political landscape since the end of the Cold War.

The Cold War-era thinking and governance frameworks are outdated for resolving new post-Cold War issues, including trade wars and China's rise, as well as residual problems like the ongoing conflict between Russia and Ukraine and potential conflicts like those on the Korean Peninsula and the Taiwan Strait.

During the Cold War, economic and trade ties between the US and the Soviet Union were virtually non-existent. Their lack of significant economic interaction ensured they remained decoupled. However, in contemporary times, more than 90% of global container shipments are intermediate products from various links in the global supply chain, including computer chips, memory, displays, buttons, zippers, and lace, rather than final products such as cell phones, cars, and clothing. The intricacy of the economic interdependence between nations is challenging for the average person to fathom.

Persisting with Cold War thinking by either China or the US is bound to lead to increased conflicts. Countries such as Singapore, France, and India, which refuse to take sides, will become increasingly apprehensive.

(This is part 3 of “The End of the New Cold War" series. The author of this article is Li Zijun, an international relations scholar and a special analysis expert for The China Brief.)

China 10-Year Bond Yield Drops to Lowest Since November

Bloomberg

China's 10-year government bond yield has fallen to its lowest level since November, as traders factor in monetary easing aimed at combating economic risks. The yield slipped one basis point to 2.81%. Iris Pang, an economist at ING Bank, suggested that the People's Bank of China could push through cuts of 10 basis points on both the one-year Medium Lending Facility rate and the seven-day reverse repo rate to encourage more loans and speed investment in the second quarter.

Qin Gang to visit Uzbekistan, attend talks on Afghanistan

South China Morning Post

China's foreign minister, Qin Gang, is set to visit Uzbekistan before attending a meeting with other foreign ministers in the region regarding the situation in Afghanistan. Qin will meet with Uzbek President, Shavkat Mirziyoyev, and the country's acting foreign minister to discuss "bilateral high-level contacts in China-Uzbekistan relations and on international and regional issues of common interest." While much of the conversation will focus on relations between China and Uzbekistan, the ministers will also discuss issues regarding Iran, Pakistan, Russia, Tajikistan and Turkmenistan. The meeting regarding Afghanistan will be the fourth such discussion with China, and discussions will cover economic and trade cooperation to ensure stability and growth in the region. One of the main focuses of the talks is the building of the cross-border China-Kyrgyzstan-Uzbekistan railway, which will provide a second land route for Chinese goods that will help stabilize the region.

Macron comments leave senior Taiwanese official 'puzzled'

Reuters

President Emmanuel Macron's comments on Taiwan given in China have been criticised by senior Taiwanese politician You Si-kun, with this founder of Taiwan's ruling Democratic Progressive Party wondering whether France's founding principles are "out of fashion". Macron suggested that the EU should reduce its dependency on the US and be a "third pole" to rival Washington and Beijing, while cautioning against being drawn into a crisis over Taiwan. France has no formal diplomatic relations with Taiwan, but does maintain a de facto embassy in Taipei, and is one of several US allies in stressing the importance of peace in the Taiwan Strait.

Asia Risks Losing Most From Rising ‘Geofragmentation,’ IMF Warns

Bloomberg

Asia is the region most at risk from the increasing geopolitical tensions, according to an official in the International Monetary Fund. The rise in “geo-fragmentation” risk over the past five years, which was exacerbated by the recent events in Ukraine, puts Asia at greatest risk of all the world's regions. Meanwhile, China's exercise of military might around Taiwan earlier this week brought the dangers of this to the world's attention. Beijing claimed President Tsai Ing-wen's meeting with House Speaker Kevin McCarthy in the US last week meant Taiwan faced becoming an "international flashpoint". Srinivasan added that while the IMF has upgraded its growth forecasts for the region to 4.6% this year, due to China's reopening and relaxation of harsh Covid restrictions, it has revised its medium-term growth projections for China to below 4%, due to an aging population and decreasing productivity.

Fidelity eyes array of product launches in China after equity debut this quarter

South China Morning Post

Fidelity International plans to launch a fixed-income mutual fund product in mainland China this autumn, following on from its forthcoming debut with an equity-focused product. Fidelity is currently raising money from Chinese retail investors and obtained permission from Beijing in December to enter the nation’s $3.7tn mutual-fund market via a wholly owned subsidiary. The fixed-income launch will take place this autumn and become the third retail fund launched by a wholly owned foreign firm in China, after BlackRock and Neuberger Berman. Andrew McCaffery, global CIO of asset management at Fidelity, cited China’s economic growth tailwinds and market-friendly policies as reasons for the focus on the country but acknowledged the previous macroeconomic headwinds that had stunted growth in recent years.

Renminbi’s share of trade finance doubles since start of Ukraine war

Financial Times

The Chinese renminbi's use in trade finance has more than doubled since the Russian invasion of Ukraine, according to data from Swift. The renminbi's share of the market has risen from less than 2% in February 2022 to 4.5% a year later. Analysts noted the new currency's popularity reflects greater use of the renminbi to facilitate trade with Russia and more expensive dollar funding. Nevertheless, the US currency's share of the market still stands at 84.3%, compared to 6% for the euro and 4.5% for the renminbi, both of which are still small fractions of the dollar's share.

World Bank chief says Western European countries need to help fund Ukraine reconstruction

Reuters

David Malpass, the President of the World Bank, has called for Western European countries to support the rebuilding of the Ukrainian economy in the wake of the country's devastation during Russia's invasion. Although the World Bank has pledged to play a large part in the reconstruction, Malpass noted that sustaining such essential sectors as transport and electricity on top of repairing industries "is way bigger relative to the size of the balance sheets of the international financial institutions." The World Bank estimates that rebuilding the Ukrainian economy will cost around $411bn, 2.6 times its expected GDP in 2022.

China Will Support Sri Lanka’s Debt Rework, Weerasinghe Says

Bloomberg

Sri Lanka wants China's support for its plan to restructure its debts and repay what it owes, said the country's central bank governor, Nandalal Weerasinghe. In an interview with Bloomberg Television, Weerasinghe said Sri Lanka was also aiming to wrap up negotiations with official and commercial creditors. The country aims to finalize its restructuring blueprint this month. Major equity investors including India, France and Japan plan to reveal plans to launch Sri Lanka's debt restructuring process this week at the International Monetary Fund and World Bank's Spring Meetings, also taking place in Washington DC. Emerging-market debt distress and cooperation between creditors are key agenda items at the meetings.

US, Philippines agree to complete security assistance road map in 5-10 years

Reuters

The US and the Philippines held discussions on the delivery of "priority defense platforms" that could include radars, drones, military transport aircraft, coastal, and air defense systems at a 2+2 meeting in Washington. Former US defense officials reportedly view the Philippines, as an ideal location for rockets, missiles, and artillery systems to counter a Chinese amphibious invasion of Taiwan. The meeting comes as previously agreed, on new Enhanced Defense Cooperation Agreement (EDCA) sites on Philippine soil that the Pentagon plans to use for joint exercises and training, among other things. The agreement would allow building facilities such as runways, fuel storage, and military housing but not a permanent presence. US-Philippines relations have improved under Philippines President Ferdinand Marcos Jr, who assured Beijing that military bases accessible to the US would not be used for offensive action, stressing that the goal was to boost Philippine defenses. 

Thailand’s Newfound Economic Stardom Comes With Caveats

Bloomberg

Thailand's economy is proving to be a rare bright spot in Southeast Asia despite the pandemic and ongoing political divisions. Goldman Sachs Group Inc. even likened the nation to a “safe haven.” Its attributes include a resurgence in tourism, low foreign debt, and a surplus in the broadest measure of trade. The baht was one of the most sought-after Asian currencies last quarter, and investors have been enthusiastic about Thai bonds. The Bank of Thailand has steadily lifted its main rate in quarter-point nudges with a lack of flare and may be just about done. If the influx of beachgoers and temple fans falls short, government stimulus would need to ramp up. Indonesia often lauds the area’s transformation, and Thais seem reluctant to grab the mic. In contrast, climate change and aging demographics make Japan a lamer duck than usual.

However, Thailand's optimism does have caveats, notably its dependence on tourism, which accounts for at least 12% of GDP, about one-fifth of employment and private consumption comprises about half the economy. Much depends on tourism, especially from China, which accounted for 28% of the country's 40 million annual visitors pre-COVID. While China's economic growth this year is expected to be an improvement on 2021, it's unlikely to be a boom, leaving Thailand vulnerable to any disappointment.

Japan rejects speculation China shot down missing military helicopter

South China Morning Post

Japan has rejected online speculation that China’s military was involved in a recent accident in which an army helicopter went missing off the southern prefecture of Okinawa. Defense ministry spokesman Takeshi Aoki said that they had “not confirmed moves by the Chinese military related to” the disappearance of the Ground Self-Defence Force (GSDF) helicopter on Thursday, despite speculation that Chinese forces shot down the helicopter with a missile or a drone, or attacked the radio waves of the craft. The cause of the missing helicopter is not yet known. All 10 people aboard the craft remain unaccounted for, and search efforts have been hampered by the coral reefs in the area. 

The helicopter disappeared near the East China Sea, which is close to a group of disputed islands known in Tokyo as the Senkakus, and in Beijing as the Diaoyus. Miyako Island, where the helicopter went missing from, is also near the Senkakus/Diaoyus. The Japanese defense ministry had earlier reported that Chinese navy reconnaissance vessels and frigate ships had been seen sailing through nearby waters. The Chinese military has made no comment on the issue. 

Chinese scientists hold first conference to discuss moon base plans

South China Morning Post

Chinese scientists have held their first Extraterrestrial Construction Conference, focussing on plans to create a sustainable, crewed base on the moon. More than 100 researchers from universities, research institutes and space contractors discussed topics such as basic lunar infrastructure, the use of robots and simulating the lunar environment on earth. There are multiple challenges to overcome, such as lack of water, low gravity and strong cosmic radiation. However, the chief designer for the Chang’e lunar exploration project warned that science may have underestimated the gap between daytime and nighttime temperatures on the moon.

Taiwan Election Shapes Up With Tsai’s Party Set to Tap Candidate

Bloomberg

Taiwanese vice-president Lai Ching-te is expected to become the ruling Democratic Progressive Party’s presidential candidate next year following the 2024 election. The vote, scheduled for January, is expected to have an impact on global geopolitics, particularly with US-China relations increasingly revolving around Taiwan, which Beijing regards as a part of China. President Tsai Ing-wen has backed a rejection of the notion that Taiwan is part of China, drawing criticism from Beijing but seeking approval from both parties in Washington. Lai has a history of assertive comments on independence, though supporters believe he has grown as a political leader and would continue Tsai’s course of strengthening Taiwan’s future in democratic values, according to Bloomberg.

From Red Carpet to Doghouse: Macron Returns From China to Allied Dismay

NY Times

French President Emmanuel Macron has been criticized for being naive about global power relationships following his recent visit to China. During his trip, the President raised eyebrows after embracing China's outlook of a “multipolar,” European currency, without blocs and a world less reliant on the extraterritoriality of the US dollar. The President's recent comments regarding the security of Taiwan, and the need for Europe to avoid becoming America's "vassals," have also landed him in hot water. This has caused the French President to be seen as more isolated than at any point during his presidency so far, with his ambitions for France to sit at the table of great powers in a world changed by Beijing's emergence as an arbiter of global conflict challenged as flawed. 

An Online Meme Group Is at the Center of Uproar Over Leaked Military Secrets

NY Times

Discord has risen in popularity recently, particularly for hyper-niche communities and more secretive groups. Discord, which launched in 2015, is primarily known as a chat app for gamers but has started to attract communities of all kinds, from meme sharing to international terrorism. The encryption makes it hard to follow, and the arbitrary and evolving restrictions placed on groups of Discord ultimately put the responsibility on the company to find extremist communities. But as it expands online, more problems are uncovered on the platform, from private international sub-communities to the major leak of federal intelligence materials. While Discord had already caught the eye of intelligence services and enforcement agencies, the recent huge data dump from the US Navy made apparent just how dangerous it can be. Membership of larger servers on mainstream social channels may become more common now that Discord has shone a light on the problems inherent in smaller, more secretive servers. Discord should enhance its restrictions on bad behavior and ensure now that knowledge of the site has expanded beyond hardcore communities, their limitations on mischief-making also increase.

U.S. House to vote on bill to address potential Huawei, ZTE threats

Reuters

The US is set to formally tighten its grip on Huawei and ZTE exports. The Senate has already passed a bill preventing US tech firms from exporting components via third parties and now the House of Representatives will vote next week on further measures aimed at curtailing the Chinese tech companies. The moves come amid fears that the companies' products could be used to allow Beijing to spy on foreign nations. The Countering Untrusted Telecommunications Abroad Act mandates investigations into the installation of such products across NATO nations and non-allied countries alike. The proposed legislation would also require public companies to disclose whether or not they are making use of equipment from Huawei or ZTE, and mandate the identification of key telecoms projects that promote US state security.

Lula to Visit Huawei Site in Shanghai, Potentially Irking US

Bloomberg

Former Brazilian President Luiz Inacio Lula da Silva is scheduled to visit China’s Huawei Technologies innovation center in Shanghai, in contradiction to US claims that the company poses a threat to national security. Lula’s visit to the center highlights the need for Brazil, one of Huawei’s most prominent markets, to offset US pressure to exclude Huawei Technologies and other Chinese telecommunications companies from 5G network projects. Similarly, German Chancellor Angela Merkel also recently rejected calls to exclude Huawei from her country’s 5G projects. In 2021, the US Federal Communications Commission included the company on a list of five Chinese technology firms considered to pose an “unacceptable risk” to national security. Furthermore, as the US emphasizes strategic competition with China, it is also seeking to create an advocacy group of democracies, with China viewed as a key competitor both economically and politically, leading to the US seeking to foster strong relationships with Brazil and Germany.

G7 to discuss digital currency standards, crypto regulation

Reuters

At this year's meeting of the Group of Seven Countries (G7), Japan will propose a framework for global regulations of digital currencies along with central bank digital currencies (CBDCs). As G7 president this year, Japan will propose plans for the standardization of crypto asset regulation as differences among nations regarding virtual assets regulation have grown since the collapse of the FTX exchange last year. Japan is prioritizing helping developing countries introduce retail CBDCs consistent with G7 public policy principles. The benefits and risks of rapid developments in digital technology are key themes of the meetings along with addressing debt vulnerabilities of some middle-income countries. Discussions will cover the risks of cyber threats, political and social divisions, maliciously spread misinformation, and destabilization of global financial markets.

Macron calls for ‘European sovereignty’ amid furor over Taiwan comments

South China Morning Post

French President Emmanuel Macron called for greater “European sovereignty” during his state visit to the Netherlands yesterday. The speech followed backlash to the president’s comments declaring Europe should become a “third pole” between mainland China and the United States, rather than become embroiled in a conflict over Taiwan. Addressing deeper issues at the root of the remark, Macron said that Europe must reduce its dependencies on other entities, particularly amid the Covid-19 pandemic and conflict in Ukraine. Calling for a “new strategy” to achieve such goals and shore up European power, Macron said that greater energy sovereignty should be a key priority, following the largely successful reduction of energy dependency on Russia after Moscow’s invasion of Ukraine. Today, the second day of his trip, Macron is scheduled for Dutch-French government consultations. The visit marks the first official state trip to the Netherlands by a French president in two decades.

Jack Ma's China homecoming heralds new era for Alibaba

Nikkei Asia

Alibaba co-founder Jack Ma has returned to China after a year-long absence that followed his criticism of China's financial regulatory system. Ma will devote most of his time to his philanthropic work, focusing on education and rural development, the Financial Times reported, citing people familiar with the matter. China's regulators have taken aim at billionaire "platform economy" entrepreneurs like Ma in recent months, as they clamped down on their businesses. Beijing-based Didi Chuxing, the ride-hailing giant, became the latest to face a regulatory dressing down on 4 July. It imposed a shock suspension of Didi's ride-hailing app from Chinese app stores days after the company's US IPO raised $4.4bn. Alibaba was also targeted by regulators, who fined the company $2.8bn amid concerns over monopolistic practices.

Brazil's Lula heads to China to discuss trade and Ukraine with Xi

Axios

Former Brazilian President Luiz Inácio Lula da Silva is embarking on a five-day visit to China, arriving tomorrow, where he will meet with Chinese President Xi Jinping. Lula is expected to raise concerns over the war in Ukraine and propose his idea of a "peace club", with Brazil and China, of countries to help mediate an end to the conflict. Discussion around Brazilian trade and investment deals is also on the agenda. China is now Brazil's largest trading partner, and Lula hopes to diversify these trade flows. Several trade agreements are expected to be signed during the visit. Lula visited the White House in February for a meeting with President Joe Biden.

The peace club idea is unlikely to be popular with the Biden administration who have criticized President Xi Jinping's peace plan, alleging that it would only lock in on Russia's territorial gains. While Lula has criticized countries for sending arms rather than seeking peace, he was also an enthusiastic proponent of the BRICS club (Brazil, Russia, India, China, and South Africa) during his previous presidential tenure (2003-2010). Last week, Lula dispatched his top foreign policy adviser to Moscow to discuss his proposal.

As Macron’s Taiwan remarks fester, top EU envoy goes to China

South China Morning Post

The EU’s China policy will be high on the agenda for Brussels’ top diplomat, Josep Borrell, as he visits Beijing. The EU has found it difficult to unite around a single approach to the country, despite China being their largest trading partner, and being considered a “systemic rival”. Recent divisions were brought to light following remarks by French President Emmanuel Macron, arguing that the EU should avoid being “a vassal” of the US on the issue of China, and urged distance on the subject of Taiwan defense. The comments were criticized in the US, leading to Europe calling for a synthesized and coherent message from Borrell. This includes diversifying the EU economy to reduce reliance on China for critical resources, a need for China to be a “facilitator” of peace in Ukraine, and reasserting the EU's commitment to its own “one China” policy. 

Albanese to be a ‘no show’ at NATO summit

The Sydney Morning Herald

Australian Prime Minister Anthony Albanese will not attend this year's NATO summit, despite the fact that in 2021, Australia was invited to the trans-Atlantic bloc's annual gathering for the second consecutive year. The top of NATO's agenda this year is the war in Ukraine. The opposition's foreign affairs spokesman Simon Birmingham said Albanese should be attending NATO to demonstrate Australia's "100% commitment" to the rules-based order, our democratic partners, and the defense of Ukraine.

European leaders such as French President Emmanuel Macron are calling on Europe to reduce its dependency on the United States and avoid getting involved in any conflict between Washington and Beijing over Taiwan. The Australian Foreign Minister Penny Wong’s decision to send a junior bureaucrat to last week's foreign ministers meeting in Brussels, where NATO is headquartered, despite her Asia-Pacific counterparts attending to help coordinate the West's responses to the war in Ukraine and China's increasing aggression.

How se­ri­ous is the Pen­ta­gon file leak for the US and its al­lies?

Al Jazeera

The Pentagon is in the middle of dealing with the fallout from the most considerable leak of US national security intelligence for many years. Initial reports stated that it included US and NATO classified plans to aid Ukraine in the conflict against Russia. However, it has now become apparent the documents involve data on South Korea, China, the Middle East, and Africa too. The size of the breach is raising suspicion that an American source was responsible rather than an ally. The Pentagon is currently hunting for the origin of the leak.   

Russia stands accused of falsifying certain files to produce misinformation, causing officials from Ukraine and South Korea to reject some of the content being released. The prospect of misinformation and false data entering these countries’s intelligence services is even more troubling since they are allies of the US. The US has to treat the potential for foreign hostile agencies to get access to the data they say is secure.

Yellen optimistic China to agree on some debt restructuring issues

Reuters

US Treasury Secretary Janet Yellen expressed optimism that China will agree on certain technical aspects of debt restructuring for poor countries during the first full-fledged meeting of a sovereign debt roundtable of creditor and debtor countries. China’s role is widely seen as important in offering support for countries that face unsustainable debt burdens. China is the largest bilateral creditor globally, and its approach to debt restructuring has come under criticism for lacking transparency and following a unilateral approach. US officials have accused China of delaying the process in finalizing debt treatment agreements for Zambia, Ghana, and Ethiopia. However, debt experts believe that China’s agreement to provide financing assurances for Sri Lanka could help boost fresh momentum for the roundtable.

China in talks on emerging economy debt workout compromise -WSJ

Reuters

China is reportedly talking to other large creditors about a potential compromise plan on debt relief for struggling developing countries. According to unnamed sources, if the plan that is being discussed is accepted, China might drop its demand for multilateral lenders to share losses in any debt-restructuring deals, which could be a significant obstacle to reaching a solution for countries like Zambia and Ghana. In exchange, multilateral lenders and regional partners, such as the Asian Development Bank and African Development Bank, would commit to providing fresh low-cost financing, including grants, to countries whose debt is being restructured. It is said that the new plan could resolve the impasse regarding China’s agreement with other government creditors to restructure Zambia’s debt and potentially become a blueprint for multibillion-dollar debt-relief deals for other developing nations facing financial difficulties. Negotiations could then move on to the details of Zambia’s debt restructuring, such as extending payment deadlines and lowering interest rates.

The key countries and revelations from the Pentagon document leak

Washington Post

Civilian software, such as chat app platform Discord, has become a key conduit for leaks exposing the secret military and espionage strategies of many countries, according to academic experts. Disgruntled insiders may have less need to engage in Sino-Russian-style hack and leak attacks or pass material to organizations such as WikiLeaks when sharing sensitive data with like-minded individuals is relatively simple, experts said. There are also fewer potential whistleblowers than a decade ago due to private-sector confidentiality agreements and increasingly tight restrictions on the sharing of secrets within organizations. Experts said attackers are increasingly going after military targets and corporations with smaller budgets and less secure data management policies than government agencies.

Questionable hacking group Zarya published documents earlier this year indicating attacks on Canadian gas infrastructure, as well as sharing plans to compromise NATO systems, experts said. Another leak on Discord had exposed military strategies regarding Ukraine, the role of the Paris-based Financial Action Task Force in taking down criminal financiers, and the military ambitions of China and other regional powers. Camille Francois, a disinformation specialist and chief innovation officer at social media analysis firm Graphika, said whistleblower-style leaks were exposing secrets at a time when public access to classified information is shrinking.

Discord, which has more than 250 million users worldwide, is one of several communications apps increasingly used to leak classified or sensitive materials to the public. Social media apps such as Telegram, which attracted a large following following its data and privacy fall-out with Russia, have also benefited from people seeking unmediated access to secret data. An anonymous spokesperson for Discord said the firm was committed to keeping the platform safe, including by adequately moderating users publishing inappropriate content.

Macron allies defend his comments on Taiwan

Financial Times

French officials have rallied to Emmanuel Macron's support after the president suggested the EU risks becoming "vassals" of Beijing and Washington. The comments, which came at the end of Macron's three-day state visit to China, were heavily criticized by officials in Brussels, Warsaw, and Berlin. The timing of Macron's remarks on China and Taiwan was unhelpful given the bloc's reliance on US military support in the Ukraine conflict, warned a source. Macron said: "We would become vassals instead of a third pole," if conflict broke out between the US and China's "duopoly.”

Macron has undertaken a flurry of diplomatic trips abroad, including to Africa and China, in a bid to distance himself from persistent criticism over his pensions reform. But he has faced criticism for his concerns over Europe's relationship with China. Stéphane Séjourné, a European parliament member and head of Macron's Renaissance party, argued that France must take up the role of a "balancing power" in a conflict between the two. "There is no desire to let Taiwan be invaded by China. On the contrary, we want to bring the tensions down and have our own voice", said Séjourné. White House officials have so far avoided criticism of Macron's China efforts.

Macron is now facing two days in the Netherlands during a tricky political period in France, blighted by widespread protests against his domestic policies. Meanwhile, Poland's prime minister Mateusz Morawiecki has also questioned the president’s plans to work with China and Russia, instead highlighting the importance of the US to Poland's security. Raphaël Glucksmann, a European MP from a French left-wing party, was highly critical of the damage caused during the visit to China when Macron allowed himself to be prostrated before the Chinese regime. 

Analysis: Macron's aim of EU unity on China undone by trip fallout

Reuters

French President Emmanuel Macron has found himself in a problematic situation, as Eastern European countries have been angered that his recent comments calling for the EU to reduce its dependence on the United States have highlighted divisions within the union. These politicians and diplomats see America as the foundation of their security and believe that ties with the United States are paramount, particularly as Washington has played a key role in helping Ukraine defend against Russia's invasion. In comparison, many countries in Western Europe have backed strong EU engagement with China and sympathize with Macron’s push for European strategic autonomy. However, even some of his supporters are frustrated with his handling of the China trip and his call for a “third pole” in world affairs alongside the US and China.

Macron’s comments were made during a trip to China which was meant to showcase European unity on China policy. However, the timing of the interview was problematic, as it came at the end of the high-profile trip and Beijing was carrying out military exercises near Taiwan. Macron’s remarks were seen as particularly blunt and could be problematic in terms of any fallout with Washington. Macron stressed that Europe must invest more in its own security, but has not suggested Europe should be equidistant geopolitically from Washington and Beijing, simply that Europe's interests will sometimes differ from those of the United States. Some governments are more sympathetic towards Macron’s agenda, such as Germany, Italy, and Spain, which have also backed strong EU engagement with China but believed that division could play into the hands of China’s geopolitical machinations.

Macron lays out his plan for Europe on a visit to the Netherlands

RFI

French President Emmanuel Macron has outlined his ideas for the future of the EU, repeating his flagship "plan for Europe" originally presented in 2017. Macron claims that the EU must change its approach in the face of US policy and the growing economic ties between China and Russia. Amongst his proposals, the French leader argued for a common defense budget, rationalized immigration and asylum policies, stronger democracy, and popular debate. His speech was delivered in the Netherlands to an international student audience to mark the 75th anniversary of the Congress of Europe. Earlier Macron had laid a wreath at the Dutch National Monument after a band played the Marseillaise, the French national anthem, in his honor.

Speech hecklers carrying banners reading "President of violence and hypocrisy" and screaming "Where is French democracy?" were removed by security. Earlier, protesters from a number of universities organized small demonstrations against Macron's pension reforms. Outside the venue, instructions to potentially disruptive demonstrators warned: "No form of burning will take place, such as the burning of photos, flags, and dolls. Demonstrators are asked not to wear face masks, helmets, balaclavas or take objects that are usually used in the event of disorder, such as chains and bats."  

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