French President Emmanuel Macron met Chinese President Xi Jinping in Beijing on Thursday (Dec 4) to strengthen trade ties, as the European Union prepares stricter trade regulations. Macron is accompanied by a large business delegation on his fourth state visit to China. Macron will travel to Chengdu in southwestern Sichuan province with Xi—a rare gesture, since the Chinese leader seldom joins visiting officials outside Beijing. However, Xi is not expected to approve a long-awaited Airbus deal or reduce duties on EU brandy imports, nearly all of which come from France.

Beijing aims to ease trade tensions with Brussels over its heavily subsidized electric vehicle sector, which has led to retaliatory tariffs on some European goods. At the same time, committing to a 500-jet Airbus order could reduce China’s leverage with the US, which is pushing for a Boeing deal, and with Europe as it plans new economic security measures.

Macron has previously emphasized a united European stance in dealing with China while avoiding confrontation, recognizing China’s importance as an export market for key French companies. The delegation with Macron includes top executives from Airbus, BNP Paribas, Schneider Electric, and Alstom, as well as leaders from the French dairy and poultry sectors. Macron and Xi are expected to sign several agreements following their meeting.

China is France’s seventh-largest trading partner, importing about US$35 billion in goods annually, including cosmetics, aircraft parts, and alcoholic beverages. France imports around US$45 billion in Chinese products, mainly low-cost items such as clothing, accessories, and gadgets through online platforms like Shein, benefiting from an EU customs waiver on purchases under 150 euros (S$226.65).