France's Macron Sparks Criticism For 'Strategic Autonomy,' Reduced Dollar Dependence As US-China Conflict Over Taiwan Looms

Recent comments from France President Emmanuel Macron sparked a wave of concern over Europe’s place in the rising tensions between the U.S. and China over Taiwan's sovereignty.

In a speech given in The Netherlands on Tuesday, the French president emphasized a stance he had already teased in an interview late last week, when he said Europe must limit its dependency on the U.S. and prevent itself from getting dragged into a fight between China and the U.S. over Taiwan.

Macron shared the first wave of disruptive comments in an interview given for the press as he returned from a three-day visit to mainland China, where he spent over six hours with Chinese President Xi Jinping, discussing the issue of Taiwan "intensely," according to French officials quoted by Politico.

"We must strive to be rule-makers rather than rule-takers,” said Macron in his Tuesday speech, emphasizing that Europe should be able to "choose [its] partners and shape [its] own destiny."

"If the tensions between the two superpowers heat up … we won't have the time nor the resources to finance our strategic autonomy and we will become vassals," said Macron last week, saying he expects the European Union to become a "third superpower" in coming years.

Last week, the head of the French state said that Europe and France should reduce their dependence on the U.S. dollar, echoing similar comments from Saudi Arabia, Indonesia and Malaysia.

Tuesday's speech in The Netherlands was interrupted by protestors criticizing Macron for a recent measure to raise the retirement age in France from 62 to 64; an issue that has sparked violent protests in Paris and across the country in recent weeks.

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Macron's remarks sparked backlash from U.S. politicians, including Donald Trump, as well as some of his European counterparts. The timing of the remarks — closely following a visit to China and in the midst of Chinese plans to block the air space north of Taiwan — have condemned the French president for showing himself as too close to China.

Several members of the European Parliament said Macron's comments are his own and do not reflect a common stance across the 27-nation bloc.

One MEP called Macron's hopes for European strategic sovereignty "pipe dreams," according to The Guardian, while a German MP said the comments were a "foreign policy disaster" for Europe. 

"With his idea of sovereignty, which he defines in demarcation rather than partnership with the USA, he is increasingly isolating himself in Europe," said German MP Norbert Röttgen.

• The iShares MSCI France ETF EWQ, which provides exposure to large and mid-sized companies in France as well as the French stock market, was up 1.5% on Wednesday and is up 9% in the past month.
• The Vanguard FTSE Europe ETF VGK was up 1.1% on Wednesday and 7.3% in the past month.

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