French President Emmanuel Macron has called for increased Chinese investment in France and a more balanced economic relationship.
Speaking after a meeting with Chinese counterpart Xi Jinping in Beijing, Macron noted that Europe, including France, requires a more defined structure to attract increased Chinese direct investment.
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According to a Bloomberg report, Macron warned that China’s expanding trade surplus with other countries is becoming unsustainable, while the level of Chinese investment into Europe continues to be insufficient.
Xi welcomed Macron on his fourth state visit to China and said that they had “friendly, sincere and fruitful talks”.
He said the two nations agreed to strengthen cooperation in aviation, aerospace and nuclear energy, while expanding into the digital as well as the green economy, AI and biomedicine.
“Interdependence is not a risk, and intertwined interests are not a threat,” Xi said at a China-France Business Council meeting, calling France an “indispensable” trade partner.
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By GlobalDataTrade imbalances have become a central theme of Macron’s diplomacy. According to the French Treasury, France’s goods trade deficit with China reached nearly €47bn ($55bn) in 2024.
Key French exports to China include aeronautics and luxury goods.
In 2024, tensions increased when France supported the EU’s decision to impose tariffs on Chinese electric vehicles (EVs).
The EU increased tariffs on Chinese-built EVs to up to 45.3%.
In response, Beijing set minimum price requirements on French cognac, causing concerns among French pork and dairy producers about potential similar actions.
The French President said “progress” had been made on agrifood exports but did not elaborate, Bloomberg reported.
Macron noted that France aims to increase cross-investment and increase the stock of Chinese investment in the nation by 2030.
However, he also cautioned about disruptions to worldwide supply chains, referencing China’s export controls on critical minerals such as rare earths.
Earlier this year, China imposed these restrictions, leading Macron to urge Brussels to adopt its toughest trade measures.
Beijing has subsequently agreed to pause some restrictions as part of a trade truce with the US.
However, the EU continues to pursue measures to lessen its dependence on China by developing additional mines, implementing its own export controls and enhancing recycling initiatives.
This week, the US announced that it is planning to seek agreements with eight allied countries to strengthen the critical minerals supply chain and secure resources for AI technology, aiming to reduce dependence on China.
According to GlobalData’s foreign direct investment database, most French investments in China from 2019 to 2025 have focused on software and information technology services, electronics, communications and media.
During the visit, Xi and Macron oversaw the signing of 12 cooperation agreements in areas including investment, natural resources, social welfare and ageing.
Macron has previously pushed for a unified European approach in dealing with China, urging Brussels to implement protectionist measures to counter subsidised Chinese goods, according to Reuters.
The EU’s goods trade deficit with China has grown by nearly 60% since 2019, while France’s trade deficit with China’s $19tn (134.35tn yuan) economy continues to widen.
According to Chinese customs data, China is France’s seventh-largest trading partner, importing around $35bn (€30.04bn) worth of goods annually.
Around 10% of these exports are cosmetics, with aircraft parts and alcoholic spirits also among the important goods.
