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Xi Jinping praised China’s ties with France as a model for the international community as he arrived in Paris amid threats of a trade war over Chinese electric cars and French cognac.
On his first visit to the EU in five years, the Chinese president will meet with his French counterpart Emmanuel Macron and the president of the European Commission, Ursula von der Leyenwho will urge him to reduce trade imbalances and use his influence with Russia in relation to the war in Ukraine.
Ahead of the visit, Macron told French newspaper La Tribune that the relationship needed to be updated “because China now has excess capacity in many areas and is exporting massively to Europe”.
In September 2023, the EU launched an investigation into whether to impose punitive duties to protect EU manufacturers against cheaper imports of Chinese electric vehicles (EVs), which it says benefit from government subsidies.
On Sunday evening, von der Leyen signaled the EU’s continued dissatisfaction with China, which she says is “currently producing with massive subsidies.” An oversupply of cars and steel due to weak demand at home is leading to unfair trade and unacceptable market-distorting practices, von der Leyen said, which “could lead to deindustrialization in Europe” and job losses, particularly in the German auto industry.
Macron will try to dissuade Xi from retaliating against the EV investigation, potentially with import tariffs on French cognac and agricultural goods.
Xi, who was welcomed in Paris by French Prime Minister Gabriel Atal, said in a statement released upon his arrival that ties between China and France were “a model for the international community of peaceful coexistence and profitable cooperation between countries with different social systems”.
IN separate ed published in the French daily Le Figaro, the Chinese president said he was coming to France with three messages: that Beijing was committed to opening “new perspectives” in its relations with France, opening “ever wider” to the world and maintaining world peace peace and stability.
“As it opens up, China is also encouraging Chinese companies to go global,” Xi wrote. “France advances reindustrialization based on green innovation, while China accelerates development of new quality manufacturing forces.”
The war in Ukraine, he wrote that China “understands the impact of the Ukraine crisis on the people of Europe.” He stressed that Beijing is not “a country or a participant in it,” adding that “China is playing a constructive role in seeking a peaceful resolution to the crisis.”
Xi’s six-day visit to Europe is the first since 2019 and will also see him visit Serbia and Hungary. The latter hopes to become the European hub of Chinese electric vehicle production after BYD in 2023 struck a deal for its first electric car plant in Europe.
One of Macron’s main priorities will be to warns Xi of the danger of supporting Russia in its invasion of Ukrainewith Western officials concerned, Moscow is now using Chinese machinery to make weapons.
Above all, the West wants China not to supply weapons to Russia and risk tipping the balance in the conflict.
“It is in our interest to make China influence the stability of the international order,” Macron said in an interview with the Economist published on Thursday.
“Therefore, we must work with China to build peace.
China launched an anti-dumping investigation into brandy imported from the European Union in January, sparking fears that cognac could take a hit similar to the one dealt to Australian wine when China imposed tariffs of more than 200%.
“We want to achieve reciprocity of exchange and take into account the elements of our economic security,” Macron told La Tribune.
Von der Leyen said on Monday: “We need to act to make sure that competition is fair and not distorted. I made it clear that the current imbalances in market access are not sustainable and must be addressed.”
The European Commission, the European Union’s trade body, has opened more than 20 competitive probes targeting China in recent months, including in the supply of cars, wind turbines and medical devices.
Beijing has reacted furiously to the latest investigation into alleged unfair access to China’s medical device market, calling it a sign of EU “protectionism”.
The 27 EU members – France and Germany in particular – are divided over their attitude towards China.
German Chancellor Olaf Scholz will not join Macron and Xi in Paris due to prior commitments, according to sources.
“In Europe, we are not unanimous on the subject because some players still see China as essentially a market of opportunity,” Macron said, without naming countries.
France will also seek to make progress in opening the Chinese market for its agricultural exports and resolve issues surrounding the French cosmetics industry’s concerns over intellectual property rights, officials said.
China may announce an order for about 50 Airbus jets during Xi’s visit, but it remains uncertain whether it will be a new deal, people familiar with the talks said.
On Tuesday, Macron will take Xi to the Pyrenees, a mountainous region dear to the French president as the birthplace of his maternal grandmother, before Xi heads to Serbia and Hungary.
Reuters and Agence France-Presse contributed to this report
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