Flanked by business leaders, Macron meets Xi as EU prepares tougher trade rules
BEIJING — French President Emmanuel Macron met Chinese leader Xi Jinping in Beijing on Thursday, seeking stronger commercial ties, as the European Union (EU) prepares to toughen up its trade rules.
A large business delegation is accompanying Mr. Macron on his fourth state visit to the world’s second-largest economy.
Mr. Macron will travel to Chengdu in southwestern Sichuan province on Friday, accompanied by Mr. Xi, lavish treatment since the Chinese President seldom joins visiting leaders outside the capital, but Mr. Xi is not expected to sign off on a long-awaited Airbus order or offer Paris relief from duties on EU brandy imports, 99% of which come from France.
Beijing wants to ease trade frictions with Brussels over its heavily subsidized electric vehicle sector, which saw China slap retaliatory tariffs on some European goods, but it also recognizes that committing to a 500-jet Airbus order would weaken its leverage over the US, which is pressing for a Boeing deal, and over Europe as it prepares to unveil new economic security policies.
Mr. Macron in the past has sought to project a robust European front in dealing with China, while being careful not to antagonize Beijing, with China a key export market for many of France’s most prominent companies.
Top executives from Airbus, France’s largest bank BNP Paribas, electrical giant Schneider and train maker Alstom, along with leaders of the French dairy and poultry industry groups, have joined Mr. Macron, who will sign a series of agreements with Mr. Xi after their meeting.
China is France’s seventh-largest trading partner, buying around $35 billion in goods each year, according to Chinese customs data. About 10% of those products are cosmetics, with aircraft parts and alcoholic spirits among other key exports.
For its part, France takes some $45 billion worth of Chinese products, mostly low-value parcels through online platforms like Shein of cheap clothes, accessories and gadgets direct from Chinese factories, thanks to an EU customs waiver on purchases below €150 ($174.86). ($1 = 0.8579 euros). — Reuters
