French President Emmanuel Macron and Chinese President Xi Jinping held a phone call on Thursday, May 22, aiming to ease escalating trade tensions and reinforce diplomatic cooperation on global issues. The leaders discussed the ongoing dispute over Chinese tariffs on French cognac exports and agreed to pursue a swift resolution.
“Chinese investment is welcome in France,” Macron wrote on X following the conversation. “But our companies must enjoy fair competition in both countries.” He added that both sides had agreed to “move forward as quickly as possible” on the cognac issue—crucial for France’s €1.4 billion-per-year cognac industry, which has been losing an estimated €50 million monthly due to China's anti-dumping measures.
China launched an investigation into European brandy in January, widely interpreted as retaliation for the European Union’s decision to impose tariffs of up to 35.3% on Chinese electric vehicles. The EU's move followed findings that state subsidies were giving Chinese automakers an unfair advantage over their European counterparts.
The call came just days after Chinese Vice Premier He Lifeng’s visit to France, during which he advocated for a “more fair, just and predictable business environment.”
Beyond trade, Macron and Xi discussed a range of international issues, including the wars in Ukraine and Gaza. Macron emphasized the importance of a lasting peace in Ukraine, calling for an “immediate and unconditional ceasefire.” On Gaza, he reiterated France’s support for a two-state solution and announced plans to work with China at an upcoming peace conference in New York, co-chaired by France and Saudi Arabia.
Chinese state media reported that Xi called for deeper solidarity between China and Europe, encouraging both sides to “safeguard international trade rules” and promote “genuine multilateralism.” Xi also reiterated China’s support for the European Union’s strategic autonomy and greater role in international affairs.
"The more complicated the international situation becomes, the more China and France should make the right strategic choices and work together to be a reliable force in maintaining international order," Xi was quoted as saying by state broadcaster CCTV.
The phone call underscores Macron’s ongoing effort to maintain close ties with Beijing, even as he prepares for a diplomatic tour of Southeast Asia. Scheduled stops include Vietnam, Indonesia, and Singapore, where Macron is expected to promote a “rules-based” international order and offer France as an alternative to what French officials describe as more “coercive” geopolitical approaches.
He will also speak at the Shangri-La Dialogue, Asia’s premier defense summit, where he plans to clarify Europe’s positions on global conflicts. French officials say Macron’s increasingly critical stance on Israel’s actions in Gaza could resonate during his visit to Indonesia, the world’s most populous Muslim-majority country.
While Macron has no immediate plans to return to China following his April 2023 state visit, the latest outreach signals France’s continued engagement with Beijing on both economic and geopolitical fronts.