European Commission President Ursula von der Leyen did not mince words. She flew to Paris to join French President Emmanuel Macron in delivering a unified message to Xi Jinping. The Chinese president touched down on May 6, 2024, for his first European Union visit in five years. Von der Leyen zeroed in on one thing: Chinese state-subsidized overcapacity.
That phrase matters. It is the core of the EU’s complaint. China’s trade surplus with the bloc has ballooned, powered by electric vehicles, solar panels, and other manufactured goods. European automakers, especially in Germany, are watching their domestic market slip away. The EU launched an investigation back in September 2023 into whether Chinese EV makers benefit from state subsidies that tilt the playing field. Von der Leyen said those subsidies threaten European jobs. She was blunt.
Macron had already set the tone. Before Xi arrived, the French president called for a rebalancing of economic relations. “We need to rebalance our relations with China,” he said. “Europe cannot accept that its industries are undermined by massive subsidies that distort competition.” That was not a diplomatic nicety. It was a warning.
France has skin in this game. Cognac, wine, and agricultural products are sitting ducks if Beijing retaliates. Macron wants China to open its market further to French farm goods and resolve intellectual property disputes in the cosmetics sector. The French president is trying to prevent a trade war while pushing for fair access. It is a tightrope walk.
Xi’s three-day state visit includes meetings with Macron and von der Leyen. The EU is pressing for fair competition and a unified stance on China. That unity is fragile. European countries have different levels of exposure to Chinese trade and investment. Some are more willing to confront Beijing than others. Von der Leyen and Macron are trying to hold the line together.
The numbers tell the story. China’s trade surplus with the EU has grown sharply. EVs and solar panels are flooding the market. European manufacturers say they cannot compete against state-backed Chinese firms. The EU investigation into Chinese EV subsidies is the first concrete step toward leveling the field. But investigations take time. Jobs are at stake now.
Von der Leyen also raised concerns about sanctions evasion. This is a newer dimension of the tension. The EU has imposed sanctions on Russia over the Ukraine war. There is worry that China is helping Moscow bypass those measures. Xi’s visit comes as Brussels wants a clearer answer on where Beijing stands. The Ukraine war is not a separate issue here. It is woven into the trade dispute.
Macron wants to avoid Chinese retaliation against French exports. Cognac and wine are high-value targets. If Beijing slaps tariffs on those goods, French farmers and distillers will feel the pain. The French president is trying to secure market access while pushing back on subsidies. That is a delicate balance.
Xi has not spoken publicly since landing. The meetings are closed-door. But the EU leadership has made its position clear. They are not asking for charity. They are asking for a level playing field. Whether Beijing will listen is the open question.
This visit is not a routine diplomatic stop. It is a test. The EU wants to see if China is willing to adjust its trade practices. The bloc has leverage: a huge consumer market and the ability to impose tariffs. But China has leverage too: supply chains, investment, and a growing share of global manufacturing.
The next three days will show whether words turn into action. For now, Paris is the stage for a confrontation dressed up as a state visit.
