Business Maverick

Business Maverick

France’s top diplomat to visit China amid EV-probe backlash

France’s top diplomat to visit China amid EV-probe backlash
An Opel Rocks-e Cargo electric vehicle on day two of the Munich Motor Show in Munich, Germany, on Wednesday, 6 September 2023. (Photo: Krisztian Bocsi/Bloomberg via Getty Images)

France’s top diplomat will head to China this week to smooth relations after a European anti-subsidy probe championed by Paris into Chinese electric vehicles raised trade tensions with Asia’s biggest economy.

French Foreign Affairs Minister Catherine Colonna will argue for a balanced relationship that respects European Union sovereignty, according to a diplomatic source, who asked not to be identified in line with government rules.

The EU investigation, which began in September, has led to concerns of a potential tit-for-tat tariff war at a time when European leaders are seeking to boost economic independence without losing access to China’s massive market after trade deficits ballooned.

China’s Foreign Ministry didn’t immediately respond to a request for comment on Colonna’s visit.

A slew of EU officials have headed to Beijing to press the bloc’s desire for a reset of relations, with European Commission and Council presidents Ursula von der Leyen and Charles Michel due to travel to China next month for the first in-person summit with Beijing’s leadership in four years. Colonna’s visit is key since France has taken a leading role in driving a tougher approach to China.

Read More: Macron Is Pushing Europe Into $900 Billion Fight With China

French car manufacturers Stellantis NV and Renault SA are particularly exposed to rising imports of affordable EVs from China, where government help ranges from production subsidies to cheap land and development aid.

In a bid to promote local producers, France is expected to unveil new criteria to hand out support for EVs next month that will likely exclude China-made vehicles due to their carbon footprint.

French officials are also concerned over the intellectual property rights of cosmetics giants such as LVMH and L’Oreal SA as China wants firms to supply data spanning from the details of manufacturing processes to the precise composition of formulas.

Colonna’s two-day visit, which is due to begin on Thursday, follows a phone call between Presidents Emmanuel Macron and Xi Jinping on Monday in which the Chinese leader said he welcomes more investment by French companies.

Xi also told Macron he “hoped that France will play a constructive role in promoting the positive development of China-EU relations,” the official Xinhua News Agency said in an article that didn’t mention the electric-vehicle probe.

The trip by Colonna also comes seven months after Macron was invited on a state visit to China during which his attempts to build bridges with Xi and mark Europe’s independence from Washington provoked a furious response from some US legislators.

Colonna is expected to address other topics including the war in Ukraine, the Israel-Hamas conflict and North Korea’s support for Russia, according to the diplomatic source. She is also set to sign cultural and scientific cooperation agreements, and discuss facilitating visas for Chinese business people.

An official in Macron’s office said Xi may travel to France next year, when the two countries will celebrate the 60th anniversary of their bilateral relationship.

Gallery

Comments - Please in order to comment.

Please peer review 3 community comments before your comment can be posted

X

This article is free to read.

Sign up for free or sign in to continue reading.

Unlike our competitors, we don’t force you to pay to read the news but we do need your email address to make your experience better.


Nearly there! Create a password to finish signing up with us:

Please enter your password or get a sign in link if you’ve forgotten

Open Sesame! Thanks for signing up.

Daily Maverick Elections Toolbox

Download the Daily Maverick Elections Toolbox.

+ Your election day questions answered
+ What's different this election
+ Test yourself! Take the quiz