Macron and Xi talk trade in Paris amid efforts to ease subsidy spat

President Xi Jinping is meeting his French counterpart Emmanuel Macron in a rare visit to Paris, marking the start of a European trip that will later include stops in Serbia and Hungary.

Macron and Xi are being joined by head of the European Commission Ursula von der Leyen.

Both Western leaders are poised to issue stern warnings regarding trade.

The visit comes against a backdrop of simmering tensions over state subsidies for Chinese green technology in the EU, which provoked the European Commission to launch an investigation last year.

According to critics, the subsidies allow Chinese manufacturers to keep their costs artificially low, which could be harming European competitors.

Products in question include electric vehicles, solar panels, and wind turbines.

"We have to act to make sure that competition is fair and not distorted," Von der Leyen remarked on Sunday night.

Speaking of previous meetings with Xi, she added: "I have made clear that the current imbalances in market access are not sustainable and need to be addressed."

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Ahead of Xi's visit, President Macron expressed similar concerns in an interview with French newspaper La Tribune.

"I'm calling for an adjustment [of trade relations] because China now has excess capacity in many areas and exports massively to Europe."

The French president, nonetheless, stressed that European players aren't unanimous in their attitudes towards Beijing.

While Macron has adopted a tough stance on the EV investigation, German Chancellor Olaf Scholz has proved to be more cautious.

In a visit to China last month, Scholz underlined the importance of fair competition, while also warning against the dangers of protectionism.

"We want to sell our cars in Europe, in North America, in Japan, in China, in Africa, in South America, in all the places," said Scholz last year. "But this means that we're open to getting the cars of other countries also on the market of Germany."

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While pushing for fair trade in Europe, Macron will also be seeking to dissuade Xi from implementing retaliatory measures.

Some fear that Beijing could introduce tariffs on imported European goods, which could deal a heavy blow to French sectors dependent on the Asian market.

In January, China opened an anti-dumping investigation into brandy imported from the EU. This sent manufacturers' share prices tumbling.

Also on the agenda for Xi's visit will be matters relating to Russia's war in Ukraine.

EU officials fear that sanctions on exports to Russia are being circumvented by Chinese firms trading with its neighbour.

There are also concerns that Chinese companies are still selling "dual-use" items to Russia that can be used to make military hardware.

"It is in our interest to get China to weigh in on the stability of the international order," said Macron in an interview with the Economist published on Thursday.

"We must, therefore, work with China to build peace."