The Taoiseach has suggested that, instead of complaining about the impact of Chinese imports, the European Union should take steps to make its own economy more competitive.

Speaking to The Irish Times in Shanghai at the end of a four-day visit to China, Micheál Martin acknowledged the challenge to European industry presented by the surge in Chinese exports of electric vehicles and other high-end products.

“There are questions in terms of overcapacity in manufacturing in China, and some of that finding its way into the European market. There are issues around subsidies. They make similar accusations in China about Europe. But fundamentally, Europe has to get competitive itself, and Europe has to set key objectives,” he said.

“We can complain and we can complain. But fundamentally, we have strengths as well in Europe, and we have a very strong market. We have strong purchasing power. China will want to access to that market on a continuing basis. It’s about how you leverage that.”

During his meetings in Beijing and Shanghai with president Xi Jinping, premier Li Qiang and others, Mr Martin heard repeatedly of China’s desire to find a new framework for its relationship with the EU. China reported a trade surplus of more than $1 trillion in 2025, with exports to the EU growing by 15 per cent, but European exports to China have shrunk in the past five years.

The Taoiseach, who first visited China as a minister in 2005, has watched China’s middle class grow to more than 600 million people as the country moved up the value chain in manufacturing.

“There was a time 20 years ago when people, perhaps rather dismissively in Europe and indeed elsewhere, might have been saying that China are imitators. I think that’s long gone now. I think China has very strong indigenous research capacities, strengths, and abilities, and therefore, genuine partnership is important,” he said.

Mr Martin was sanguine about the current global situation, suggesting Ireland and the EU could manage their relationships with both the United States and China. He dismissed as doom-mongering some of the commentary about Europe’s prospects in the era of Donald Trump.

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“The US is trading with China, notwithstanding all the noise. President Trump talks about his relationship with president Xi,” he said.

“The problem in some respects with our politics is that it’s very short term, a lot of noise. People immediately say things are going to be terrible in terms of the US-Europe relationship. But it’s not actually. There are challenges but we’ve managed to navigate it this year. It’s going to be difficult but we’re going to navigate the next while too.”

The Taoiseach spoke to The Irish Times a few hours before he announced that the Government would vote against the EU’s trade deal with the Mercosur group of South American countries. He rejected the suggestion such a vote was in conflict with his rhetoric about free trade and open markets during his visit to China.

“Everything is balanced. Everything has pros and cons. I mean, climate is a big agenda item, and we put a lot of obligations on Irish farmers and European farmers in respect of environmental obligations in respect of a carbon footprint on farms.

“Farmers have responded magnificently in Ireland, and it really sticks in their craw then, having been asked by the European Union and all of us to do so much. Then that product will come in from a region that is nowhere near as carbon-efficient in food production as Ireland is,” he said.

“There is a balance to be struck here, but we have concerns in terms of that fundamental point, which farmers keep saying to us, how is it that you put so many obligations on us and not on others?”