French President Emmanuel Macron and Chinese President Xi Jinping agreed during a phone call Thursday to move "as quickly as possible" toward resolving their trade dispute over Chinese tariffs on European cognac, according to statements from both governments. Macron announced the development on X, formerly Twitter, just days before he departs for a trip to Southeast Asia.
"I reaffirmed France's commitment to continuing to build a strong economic relationship with China. As such, Chinese investment is welcome in France. But our companies must benefit from fair competition in both our countries. This is a fundamental point," Macron wrote. He added that the cognac issue is "essential for our producers."
The two leaders also addressed broader global matters including the war in Ukraine and tensions in the Middle East. Macron said both parties agreed that the Ukraine conflict requires "a lasting and robust peace," starting with an "immediate and unconditional ceasefire."
The conversation comes amid heightened EU-China trade friction. In January, China launched an anti-dumping investigation into European brandy-widely seen in France as retaliation for the EU's tariffs on Chinese electric vehicles. The probe was extended in April, giving European exporters more time to avoid potential Chinese penalties.
Xi used the call to emphasize Beijing's desire to partner with France on defending the global trade order. "China and France should make the right strategic choices and work together to be a reliable force in maintaining international order," Xi said, according to Chinese state broadcaster CCTV. He stressed the importance of "genuine multilateralism" and praised Europe as an "independent pole" in a multipolar world.
The call also followed new EU proposals to impose handling fees on low-value packages entering the bloc-most of which originate from China's booming e-commerce sector. Xi did not directly reference the new €2 levy during the call, but reaffirmed China's support for "safeguarding international trade rules."
China and the EU are each navigating separate disputes with the United States as well. Last week, China and the U.S. entered a 90-day tariff truce following talks in Geneva, even as tensions continue to simmer over Washington's restrictions on Huawei's AI chips.
