{
  "id": 8779552,
  "title": "Former WTO head Pascal Lamy on the EU’s China choice: get a rebalance, or go protectionist",
  "url": "https://urgent.news/2026/09/20/former-wto-head-pascal-lamy-on-the-eus-china-choice-get-a-rebalance",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-20T22:00:11.000Z",
  "source": {
    "name": "South China Morning Post",
    "slug": "south-china-morning-post",
    "url": "https://www.scmp.com/economy/global-economy/article/3367981/former-wto-head-pascal-lamy-eus-china-choice-get-rebalance-or-go-protectionist"
  },
  "original_language": "en",
  "account": "Pascal Lamy, a former WTO director general, recently discussed the European Union's policy towards China. He emphasized that free trade is not dead, but rather it is evolving and becoming more open. However, Lamy pointed out that the growth of global trade has slowed down due to factors such as the fragmentation of production systems and the emergence of protectionist attitudes among some international trade players, primarily driven by the United States and China's growing export surplus.\n\nLamy identified three major problems facing the global trade system from a European perspective. The first problem is the United States, which has embarked on a protectionist agenda under President Donald Trump. While this strategy may not lead to the de-globalization of the planet, it has negatively impacted US consumers. The second issue is the World Trade Organization (WTO) itself, which has become less effective in promoting trade openness due to issues such as the US de facto withdrawal, a dysfunctional dispute settlement system, and the WTO's inability to negotiate new trade-opening agreements in areas like digital trade.\n\nThe third and most significant problem, according to Lamy, is China. This Southeast Asian giant has a massive trade deficit and is systematically increasing its industrial capacity. The French leader highlighted that China's comparative advantages lie in manufacturing, but the EU faces an unsustainable trade deficit with China. A key challenge is that China has not addressed its macroeconomic imbalances, despite acknowledging the need for a rebalance towards domestic consumption. Lamy believes that China's strategic goal is to achieve self-sufficiency in various sectors, including services, which currently holds little comparative advantage for the country.",
  "summary": "Pascal Lamy served two consecutive terms as director general of the World Trade Organization from 2005 to 2013. Before that, he spent decades in various French government roles, contributing to the building of the European Union. He was chief of staff to European Commission president Jacques Delors from 1985 to 1994, and European trade commissioner from 1999 to 2004. Here, he discusses Europe’s…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}