Home International Conflict Xi Jinping Touches Down in France Amidst EU-Ukraine Trade Tensions

Xi Jinping Touches Down in France Amidst EU-Ukraine Trade Tensions

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Chinese President Xi Jinping
Chinese President Xi Jinping

Chinese President Xi Jinping arrived in Paris on May 6, 2024, for his first visit to the European Union in five years, as trade tensions between Brussels and Beijing escalate over Chinese electric vehicle subsidies and concerns about China’s role in the Ukraine war. The three-day state visit includes meetings with French President Emmanuel Macron and European Commission President Ursula von der Leyen, with the EU pressing for fair competition and a unified stance on China.

Macron pushes for fair trade and market access

Macron set a firm tone ahead of Xi’s arrival, calling for a rebalancing of economic relations. China’s trade surplus with the EU has grown sharply, driven by exports of electric vehicles, solar panels, and other manufactured goods. The EU launched an investigation in September 2023 into whether Chinese EV makers benefit from state subsidies that give them an unfair advantage over European competitors.

“We need to rebalance our relations with China,” Macron said in a statement before the visit. “Europe cannot accept that its industries are undermined by massive subsidies that distort competition.”

The French president also aims to prevent Chinese retaliation against French exports. Cognac, wine, and agricultural products are seen as potential targets if Beijing imposes countermeasures. France wants China to open its market further to French agricultural goods and resolve intellectual property disputes in the cosmetics sector.

Von der Leyen warns on subsidies and sanctions evasion

European Commission President Ursula von der Leyen joined Macron in delivering a coordinated message to Xi. She highlighted the risk Chinese manufacturing practices pose to European jobs, particularly in Germany’s automotive industry.

“China’s state-subsidized overcapacity is not just a trade issue. It threatens the future of European industry and employment,” von der Leyen said. “We expect China to take concrete steps to level the playing field.”

Beyond trade, the EU is concerned that Chinese intermediaries are helping Russia circumvent Western sanctions imposed after its 2022 invasion of Ukraine. European officials have flagged the potential transfer of Chinese-made machinery and dual-use goods that could support Russian arms production. Xi reiterated China’s official position of non-interference in the Ukraine conflict while calling for a peaceful resolution.

Xi’s op-ed and diplomatic messaging

In an op-ed published in the French daily Le Figaro on May 5, Xi outlined three priorities: strengthening Sino-French ties, keeping China open to the world, and promoting global peace. He described the relationship as “exemplary” and reaffirmed China’s commitment to multilateral cooperation.

On the ground, Xi’s arrival was marked by diplomatic pleasantries. He emphasized the long history of Sino-French relations and China’s desire for stability. But behind the rhetoric, the visit is a delicate balancing act. Macron plans to accompany Xi to the Pyrenees region for a private dinner, a gesture of personal diplomacy aimed at easing tensions.

European divisions and China’s broader tour

The EU remains divided on how to handle China. France and Germany have different priorities. Germany, heavily reliant on Chinese demand for its cars and machinery, has been more cautious about confrontation. Macron has pushed for a unified European approach, but internal disagreements persist.

Xi’s European tour spans six days, including stops in Serbia and Hungary. Hungary, a EU member with close ties to Beijing, is positioning itself as a hub for Chinese EV manufacturing. That has raised concerns among other EU states about a potential backdoor for Chinese exports into the single market.

China may announce a major aircraft order during the Paris visit, though details remain unclear. The deal could involve Airbus, the European aerospace giant, and would be a symbolic gesture of economic cooperation.

The visit comes at a time of heightened geopolitical friction. The EU is trying to defend its economic interests without triggering a full-blown trade war. Xi, for his part, wants to project an image of openness and stability while pushing back against what Beijing sees as Western protectionism.

Whether the talks produce concrete results remains uncertain. The EU’s investigation into Chinese EV subsidies is ongoing, and Brussels has not ruled out imposing tariffs. Macron’s invitation to Xi for a private retreat in the Pyrenees signals a willingness to engage, but the underlying tensions are unlikely to disappear.