Merz and Macron are calling for tougher trade instruments against China

In extreme cases, the European Union should completely cut off China's access to the internal market. This is what Federal Chancellor Friedrich Merz (CDU) and French President Emmanuel Macron are demanding in a joint letter to the EU leaders. Merz and Macron are setting a new tone in trade relations with China - even if the name China is not officially mentioned. Exclusion from the European market is a nuclear option, and that is what it should be.

The EU is finally achieving the equality of arms that it lacks in the conflict with China and the USA. That's the idea. The USA can impose tariffs on the EU based on Sector 301 investigations due to allegedly unfair trade practices. China has armed itself with a series of decrees that allow export restrictions on raw materials and batteries.

The EU has not yet been able to respond adequately to this. There is an anti-blackmail tool, but it is difficult to activate. Merz and Macron want to change that. The European Commission should be able to activate the new instrument independently. The member states could only prevent this with a qualified majority.

The EU should expressly not act as an aggressor. Macron would probably have liked to go further here. The instrument required is a pure second-strike weapon. And it allows a measured response to attacks from China or the USA. The EU can react flexibly, following the example of NATO's nuclear strategy. It may initially partially restrict market access. Complete exclusion only occurs at the end of an escalation chain.

The hope is that the new second-strike weapon alone will deter China from escalation. Like any nuclear option, it should never be used. However, the approach is flawed by the fact that the EU cannot credibly use the new weapon. As important as the EU market may be for China, the country can cope with exclusion. But if China cuts off Europe's access to rare earths, the treadmills will come to a standstill within a few days. As long as the Europeans don't change anything, there can be no question of equality of arms.