French President Emmanuel Macron said on Thursday, May 22, that he told Chinese leader Xi Jinping that companies from both countries "must enjoy fair competition."
"Chinese investment is welcome in France. But our companies must enjoy fair competition in both countries," Macron wrote on X following talks with Xi. "We agreed to move forward as quickly as possible on the issue of cognac, which is essential for our producers," Macron added.
President Xi urged China and France to "strengthen solidarity and cooperation" and told Macron he was ready to work "hand in hand with Europe," Chinese state media reported Thursday. China and France should "strengthen solidarity and cooperation," Xi told Macron in a call, adding that China was "willing to work hand in hand with Europe to address global challenges," state broadcaster CCTV reported.
Macron and Xi spoke by phone amid trade tensions between the European Union and China. European exports of brandy to China have been hit with duties since October after the European Union imposed tariffs of up to 35.3% on Chinese electric vehicles over claims of unfair competition. China is a major market for French cognac, with exports worth €1.4 billion per year. The anti-dumping measures are costing the industry €50 million per month.
The EU has imposed hefty tariffs on Chinese-made electric cars after a probe found Chinese state subsidies were undercutting European automakers. The talks between the two leaders follow Chinese Vice Premier He Lifeng's visit to France last week, during which he called for "a more fair, just and predictable business environment."