France: France's Macron meets China's Xi as EU prepares tougher trade rules

BEIJING- French President Emmanuel Macron met Chinese leader Xi Jinping in Beijing on Thursday, seeking stronger commercial ties, as the European Union prepares to toughen up its trade rules.

A large business delegation is accompanying Macron on his fourth state visit to the world's second-largest economy.

Macron will travel to Chengdu in southwestern Sichuan province on Friday, accompanied by Xi, lavish treatment since the Chinese president seldom joins visiting leaders outside the capital, but Xi is not expected to sign off on a long-awaited Airbus order or offer Paris relief from duties on EU brandy imports, 99% of which come from France.

Beijing wants to ease trade frictions with Brussels over its heavily subsidised electric vehicle sector, which saw China slap retaliatory tariffs on some European goods, but it also recognises that committing to a 500-jet Airbus order would weaken its leverage over the U.S., which is pressing for a Boeing deal, and over Europe as it prepares to unveil new economic security policies.

Macron in the past has sought to project a robust European front in dealing with China, while being careful not to antagonise Beijing, with China a key export market for many of France's most prominent companies.

Top executives from Airbus AIR.PA, France's largest bank BNP Paribas BNPP.PA, electrical giant Schneider SCHN.PAand train maker Alstom ALSO.PA, along with leaders of the French dairy and poultry industry groups, have joined Macron, who will sign a series of agreements with Xi after their meeting.

China is France's seventh-largest trading partner, buying around $35 billion in goods each year, according to Chinese customs data. About 10% of those products are cosmetics, with aircraft parts and alcoholic spirits among other key exports.

For its part, France takes some $45 billion worth of Chinese products, mostly low-value parcels through online platforms like Shein of cheap clothes, accessories and gadgets direct from Chinese factories, thanks to an EU customs waiver on purchases below 150 euros ($174.86).

($1 = 0.8579 euros)

Joe Cash/Reuters