French President Emmanuel Macron has urged an increase in Chinese foreign direct investment (FDI) in Europe, speaking at the World Economic Forum (WEF) on Tuesday, January 20. The President said that while Europe remains open to Chinese partnerships, the focus must shift from simple product exports to local manufacturing and technology transfers within "key sectors."
Addressing global leaders in Davos, President Macron clarified that Europe’s economic growth would be better served by Chinese firms building a physical presence on the continent. He argued that this approach is preferable to the current model of importing goods that may benefit from high subsidies or differ from European regulatory standards.
"China is welcome," Macron stated. "But what we need is more Chinese foreign direct investment in Europe in some key sectors to contribute to our growth." He specifically highlighted industries where China currently holds a significant technological lead, such as electric vehicle (EV) batteries, solar panels, and green energy infrastructure.
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The President's comments follow his December visit to Beijing, where he met with President Xi Jinping to discuss "mutually beneficial projects." During that summit, Macron stressed the importance of protecting the European industrial base while acknowledging China’s competitive advantage in renewable technologies.
A central pillar of the French President’s strategy is the "European preference" policy. Macron has advocated for a requirement that all vehicles sold within the European Union contain at least 75% locally sourced components. This target mirrors the current supply chain levels seen in traditional internal combustion engine (ICE) vehicles, and is intended to ensure that the transition to electric mobility does not result in the hollowing out of European manufacturing.
The call for investment comes at a delicate time for EU-China trade relations. In late 2024, the European Union imposed additional tariffs on Chinese-made electric vehicles, on top of the standard 10% import duty, citing concerns over state subsidies.
Last week, the European Commission issued new guidance on "price undertaking" offers—a mechanism that would allow Chinese manufacturers to commit to minimum selling prices in exchange for the removal of these high tariffs. However, the Commission clarified that the existing duties remain in effect for now. Brussels also recently dismissed reports that these tariffs would be extended to include hybrid vehicles.