Xi visits Europe for first time in five years

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French President Emmanuel Macron and EU Commission chief Ursula von der Leyen urged Chinese President Xi Jinping to ensure more balanced trade with Europe as the three met in Paris on Monday at the start of Xi’s two-day visit.

Macron also pressed the Chinese leader to use his influence on Russia to end the war in Ukraine, while Xi said France and China should jointly aim to prevent a “new Cold War” between global blocks, on matters including trade.

Xi arrived in Europe for the first time in five years, at a time of growing business tensions that include the European Union investigating Chinese industries such as electric vehicle exports, while Beijing probes mostly French-made brandy imports.
Macron’s official gifts for Xi included cognac by LVMH-owned Hennessey and Remy Cointreau, which are among the French companies affected by China’s retaliatory anti-dumping brandy investigation.

Without giving details, Macron thanked Xi for what he described as his open attitude regarding provisional measures on cognac.
“The EU today has the world’s most open market … but we want to be able to protect it,” Macron told reporters, speaking alongside Xi after the two met several times during the day and reviewed troops together.

“It’s through dialogue and the joint work of our teams that we can move forward,” he said.
Speaking earlier in the day, after she joined the two for talks under the gilded ceilings of the Elysee Palace, von der Leyen was more blunt.
The European Union “cannot absorb massive over-production of Chinese industrial goods flooding its market,” she said.

“Europe will not waver from making tough decisions needed to protect its market,” she said, in reference to the trade probes and the sanctions that could follow. The relationship between Europe and China is hurt by unequal market access and by Chinese state subsidies, she said.

The EU’s more assertive stance on trade with China dovetails with Washington’s approach. U.S. Treasury Secretary Janet Yellen has warned Beijing that Washington will not accept new industries being “decimated” by Chinese imports.

During their talks, held behind closed doors, Xi agreed that economic and trade frictions should be addressed through dialogue, Chinese state media said.
But he also told Macron and von der Leyen that the problem of China’s over-capacity “does not exist either from the perspective of comparative advantage or in light of global demand”, Chinese media said.

In brief comments televised before one of his meetings with Macron, Xi urged his counterpart to join him in showing”independence” and “prevent a ‘new Cold War'” between blocs.
“We need to be forward-looking and work together for an equal and orderly multi-polar world,” Xi said, calling on Macronto joining him in opposing “decoupling” China’s supply chains and other economies.


French diplomatic sources said Xi seemed receptive to concerns about trade imbalances, adding that the objective of the visit was to get messages across. Whether any action would follow remained to be seen, the sources said.
The EU’s 27 members – in particular France and Germany – are not unified in their attitude towards China. While Parisadvocates a tougher line on the EV probe, Berlin wants toproceed with more caution, sources say.
German Chancellor Olaf Scholz did not join Macron and Xi in Paris due to prior commitments, diplomats said.

Some French government officials privately expressed concern that Berlin will try to undermine the electric vehicle probe, which has zeroed in on Chinese carmakers BYD, Geely and SAIC. China is a key market for Germany’s export-led economy and its carmakers such as BMWand Mercedez-Benz.

France is also pushing China to open its market to Frenchagricultural exports and resolve issues around the Frenchcosmetic industry’s concerns about intellectual property rights.
“Among ourselves, French and Chinese companies andauthorities, we talk to each other continuously,” Jean-PaulAgon, the chairman of French cosmetics giant L’Oreal, told aFranco-Chinese business forum. “What matters is our common,shared desire to find solutions and move forward together.”
China, meanwhile, may announce an order for around 50 Airbusaircraft during Xi’s visit.

After a dinner at the Elysee Palace, Macron will take Xi tothe Pyrenees on Tuesday, a mountainous region dear to the Frenchpresident as the birthplace of his maternal grandmother.