During Chinese President Xi Jinping's first visit to Europe in five years and his third trip to France since taking office as Chinese President in 2013, French President Emmanuel Macron welcomed China’s “commitment” not to sell arms to Russia and to control the flow of dual-use goods to the Russian military. Macron also thanked Xi for backing his idea of an “Olympic truce” for all global conflicts to pause during the Paris Olympics in July and August. Xi and Macron also held a trilateral meeting with European Commission President Ursula von der Leyen. European leaders have railed against what they describe as “overcapacity” in China’s manufacturing sector. They believe there is not enough demand in China to absorb the volume of hi-tech goods being made there, and that these goods will be exported to the EU en masse at discount prices, endangering local producers. Von der Leyen warned that “Europe will not waver from making tough decisions needed to protect its economy and its security”. President Xi rejected these claims, saying “there is no such thing as China’s overcapacity problem”.
A 10-point statement was released on the Middle East, including “opposition to an Israeli offensive on Rafah, which would lead to a humanitarian catastrophe on a new scale”. An agreement on artificial intelligence “emphasized the importance of strengthening international cooperation in the context of rapid technological development to guarantee international security and stability, sovereignty and respect for fundamental rights”. Chinese and French enterprises also announced a series of deals, including an agreement between France’s Orano and China’s Xiamen Tungsten New Energy to forge a “global strategic partnership” in the battery industry, and a memorandum of understanding (MOU) between French company Fives and Chinese firm Envision to cooperate in battery cell assembly in France.
A long list of Chinese companies were invited to a business forum, including Huawei Technologies, ZTE, and rail equipment provider CRRC, which have been sanctioned by the EU. French Finance Minister Bruno Le Maire said France was open to Chinese investment in its electric vehicle sector, including from BYD. China agreed to open its market to French exports of pork offal and processed pork proteins, while the two sides agreed to “intensify their exchanges” on opening the Chinese cosmetics markets to French companies. Xi said that “both sides should properly handle economic and trade frictions through dialogue and consultation, and accommodate their legitimate concerns”. In an op-ed published in the French newspaper Le Figaro, Xi urged more French companies to invest in China, vowing to “move faster to expand market access to telecoms, medical and other services”.At the Elysee Palace in Paris, President Xi said that the two sides should jointly uphold mutual benefit and oppose decoupling and erecting barriers, while sticking to farsightedness and promoting the equal and orderly multi-polarization of the world. Further declarations were signed on biodiversity and agriculture, while a number of cultural exchanges were agreed to.
The total trade volume between China and France reached CNY555.11 billion in 2023, up 3.1% year-on-year. China’s imports amounted to CNY262.42 billion, surging 10.9% year-on-year, Customs data showed. China’s transition from emphasizing the scale and speed of foreign investment to focusing on quality has led to a significant increase in French investment in the high-tech manufacturing, green and consumer goods sectors. French investment in China surged 586% year-on-year in the first two months of this year. By the end of 2021, more than 6,000 French companies were established in China with a total investment surpassing USD18 billion.
President's Xi's visit to France was balanced with subsequent visits to Serbia and Hungary. During his visit to Serbia, Xi announced the elevation of “the comprehensive strategic partnership” with Serbia and a total of 28 agreements to deepen economic and other cooperation were signed. China was the biggest investor in Serbia last year, as well as its second-largest trading partner. Trade between the two nations went up eightfold over the past decade, while investment from China in Serbia increased thirtyfold. The China-Serbia free trade agreement will take effect on July 1 and new direct flights will be opened between Belgrade and major Chinese cities.
China and Hungary announced an upgrade in their bilateral relationship to an “all-weather” comprehensive strategic partnership, upgrading it to the same status as China's relations with Belarus, Pakistan and Venezuela. President Xi and Hungarian Prime Minister Viktor Orban witnessed the exchange of 17 agreements between the two nations, covering cooperation on the Belt and Road Initiative (BRI), investment, nuclear energy, supply chains, finance, trade, green development and exports of Hungarian agricultural products, culture, technology and media services. Xi described his meetings with Orban as “cordial, friendly and productive” and said the two countries were embarking on a “golden” voyage. The Chinese leader said Beijing and Budapest would bring cooperation between China and Central and Eastern European countries to “a wider scope, a broader field and a higher level”. Xi added that China and Hungary would deepen ties in economics, trade, investment and finance, push forward construction of the Budapest-Belgrade railway, expand cooperation in emerging industries, increase the number of direct flights, and optimize entry policies.
This overview is based on reports by the China Daily, the Global Times and the South China Morning Post.
