Macron arrives in China for talks with Xi on trade ties and Russia's war in Ukraine • FRANCE 24

Key Concepts

• Sino-French Relations: The evolving economic and political relationship between France and China.
• Global Governance: The international system of rules, norms, and institutions that govern relations between states.
• Deindustrialization: The decline of industrial activity in a region or country.
• Technology Transfer: The movement of technology from one country or entity to another.
• Fast Fashion: A business model characterized by rapid production of trendy clothing at low prices.
• European Market: The collective market of European Union member states, a significant economic bloc.

Macron's Visit to China and Sino-French Relations

The discussion centers on French President Emmanuel Macron's visit to China and the complex dynamics of the relationship between France and China, particularly in the context of China's collaboration with Russia and broader economic issues.

1. Macron's Objectives and Challenges:

• Addressing China's Collaboration with Russia: A primary concern for Macron is to influence China's stance on the Ukraine war and its close ties with Russia. However, the economist Jean-François Deio suggests that Macron's ability to significantly sway Xi Jinping on this issue is "very little."
• Global Governance: Macron intends to strongly advocate for a specific point on global governance. He has invited Xi Jinping to the G7 summit in France next year. Deio views Xi's potential attendance as a significant development, implying that it would signal China's acknowledgment of the existing global governance framework, rather than solely promoting its own "global governance initiative."

2. Evolution of the Franco-Chinese Relationship:

• Historical Context (2007-2008): The conversation contrasts the current relationship with the past, recalling Nicolas Sarkozy's 2007-2008 visit to China with French business leaders. This period saw significant deals, including the sale of Airbus aircraft and technology exchanges.
• Shift in Dynamics: The relationship is described as fundamentally different now. This is attributed to:
  • A Different France: Implied societal and political changes within France.
  • A Very Different China: Xi Jinping was not at the beginning of his mandate then, and China was less assertive. The absence of COVID-19 and the Ukraine war also shaped the previous dynamic.
• Macron's Commitment vs. Reality: Macron had committed to visiting China annually, but this visit marks only his fourth. This contrasts with the German Chancellor's practice of visiting China yearly, highlighting a gap between France and Germany's engagement with China and the difficulty in fulfilling commitments due to China's increased leverage.

3. Economic Conflicts and Trade Issues:

• "Big Topics" vs. "Smaller Conflicts": While major geopolitical issues like Ukraine are discussed, there are also smaller, potentially solvable trade conflicts.
• Cognac Trade Dispute: A specific example of a smaller conflict mentioned is the issue surrounding cognac trade.
• Deindustrialization and Competition: A major concern for France is its own deindustrialization, with China having captured many industrial sectors, particularly in the automotive industry.
• Technology Transfer Paradox: France is considering fighting back through technology transfers, which is seen as a paradox given that 40 years ago, China was the recipient of French technology. If France engages in technology transfer now, it must implement the same restrictions that China imposed when it received technologies.
• European Market Leverage: China's dependence on the European market is identified as a weakness. Macron's message is likely to emphasize the importance of this market to China and the potential for Europe to impose conditions or close its market if China does not make concessions.

4. Fast Fashion Controversy:

• Shein Investment: The controversial investment of the fast fashion outlet Shein in Paris, near the Hôtel de Ville, is raised as an example of a specific issue.
• Broader Impact: It's noted that this issue also affects Chinese brands, as they too suffer from the fast fashion model. Europe is addressing this by potentially raising import taxes in the sector.

5. Key Arguments and Perspectives:

• China's Assertiveness: China is perceived as more assertive now than in the past.
• European Market as a Tool: The European market is presented as a significant leverage point for France and Europe in negotiations with China.
• Reciprocity in Technology Transfer: The principle of reciprocity is crucial when discussing technology transfers, mirroring China's past practices.

6. Data, Research Findings, or Statistics:

• No specific figures or statistics were mentioned in the transcript.

7. Logical Connections:

• The discussion flows from Macron's immediate objectives in China (Russia collaboration, global governance) to the broader historical context of Franco-Chinese relations.
• Economic issues, including deindustrialization and trade, are presented as central to the current relationship, linking back to the evolution of China's economic power.
• The fast fashion example serves as a concrete illustration of a specific trade-related concern within the larger economic framework.

8. Notable Quotes or Significant Statements:

• "How much can he move Xi Jinping? Very little." (Attributed to Jean-François Deio, regarding Macron's influence on China's stance on Russia).
• "China has captured most industrialized sectors namely cars and we have now to to fight back." (Attributed to Jean-François Deio, highlighting economic competition).
• "If we do transfer technologies, then we have to put the same restrictions as China did put when China invited our technologies to come into China." (Attributed to Jean-François Deio, emphasizing reciprocity in technology transfer).

9. Conclusion/Synthesis:

Macron's visit to China is framed as a critical moment in a significantly altered Franco-Chinese relationship. While Macron aims to address geopolitical concerns like China's ties with Russia and advocate for a specific vision of global governance, the core of the discussions revolves around economic competition, deindustrialization, and the strategic use of the European market as leverage. The conversation underscores the shift in power dynamics, with China now holding a stronger hand, and highlights the need for France to adopt a more assertive and reciprocal approach, particularly in areas like technology transfer. The fast fashion issue serves as a microcosm of the complex trade challenges faced by both sides.