Macron seeks help to compete with China
2022.11.25 13:35
Macron seeks help to compete with China
Budrigannews.com – Next week, U.S. President Joe Biden will host French President Emmanuel Macron on a rare state visit designed to emphasize Franco-American friendship rather than the bitter economic rivalry between the two countries.
It is anticipated that the two nations will put on a show of unity in response to common threats from Russia and China, more than a year after Washington, London, and Canberra torpedoed a large French submarine contract, which strained relations between the United States and France to breaking point.
However, the U.S. Inflation Reduction Act (IRA) will be the octopus in the Oval Room.According to Europeans, the enormous package of subsidies given to American manufacturers could be fatal to their industries, which are already struggling with high energy costs as a result of Russia’s invasion of Ukraine.
At a time when Western allies are facing intense economic competition from China, which they claim uses its economic might as diplomatic leverage, Macron will attempt to persuade the United States that it is in their interest not to weaken European companies.
“This is the pitch:We can assist in awakening others in the EU from their ignorance regarding the Chinese threat.A French diplomat spoke to Reuters on condition of anonymity, “But you can’t ask us to help with China and do an IRA on us.”
According to a French presidential adviser, the leader of the country will attempt to negotiate exemptions for European businesses based on the precedent set by Mexico and Canada.
The French president stated that German automakers, for whom the United States is a significant export market, are among the most affected by the IRA package, which provides subsidies for electric vehicles manufactured in the United States.Although French automakers do not export to the United States, the country’s major auto parts suppliers would be affected.
The White House talks will also focus a lot on energy issues, and France wants to make it easier to work together on nuclear energy.Macron wants France to build more nuclear reactors, but the country is having trouble with corrosion at its old ones.
EDF, a French utility, (EPA:)has brought in hundreds of specialized workers from Westinghouse, a company that makes nuclear power plants in the United States, including welders, to help fix problems at French nuclear plants and prevent power outages in Europe this winter.
According to the French presidential advisor, Macron will also travel to Louisiana, ostensibly to honor the state’s French heritage but also to discuss energy issues.
Macron, who has expressed dissatisfaction with the high cost of U.S. gas exports, has stated that he will discuss the matter with Vice President Joe Biden. TotalEnergies, a major liquefied natural gas terminal, is owned by the French oil giant.
On November 8, Macron stated to French executives, “The United States produce cheap gas but sell it to us at a high price.”Additionally, they provide substantial subsidies to certain industries, rendering our projects uncompetitive.”
He stated, “I think that’s unfriendly, and I will go to Washington at the end of the month in a spirit of friendship… to simply plead for a level playing field.”
