France calls for more Chinese investment while urging new EU trade strategy

French Trade Minister Laurent Saint-Martin signaled openness to Chinese investment, aiming to ease tensions with Beijing.

Speaking at a business forum in Paris, Saint-Martin endorsed the idea of closer economic ties with China but stressed that future investments should be sector-specific, linked to technology transfers, and include joint ventures.

“There is a path ahead […] we are not there yet, but I believe it is entirely desirable for both sides,” said Saint-Martin, calling for “open markets and cross-investment.” He warned that Europe “cannot keep playing by old rules” as trade increasingly becomes a “tool of power.”

The minister argued that a new European strategy should be both “defensive” — protecting key sectors and countering unfair practices such as subsidies — and “offensive,” by pursuing new markets and diversifying abroad.

China’s ambassador to France, Deng Li, echoed this message during the same panel, urging Beijing and Brussels to “work together to defend free trade and multilateralism.” He stressed that both sides shared an interest in “promoting multilateralism and resisting inward-looking tendencies.”

Last year, Paris strongly backed the EU’s decision to impose steep tariffs on Chinese electric vehicles. In response, Beijing introduced tariffs of up to 34.9% on EU brandy starting in July. Despite France’s intensive diplomatic efforts to block the move, the measure hit French cognac and Armagnac producers, though major brands that agreed to price increases were exempted.

At the same time, France’s stance toward China contrasts with Brussels’ discontent over its latest trade deal with Washington, which capped US tariffs on European goods at 15% in exchange for other concessions.

Prime Minister François Bayrou denounced the deal as “submission,” while EU Affairs Minister Benjamin Haddad urged the bloc to prepare its new Anti-Coercion Instrument — dubbed the “trade bazooka” — which could restrict US service providers’ access to the European market.

Saint-Martin also noted that under the new US trade framework, Europe was “relatively better off” than some of its neighbors, but argued that “a different negotiation strategy” could have delivered “a better outcome.”

In an interview with Euractiv, he described today’s world as being in “permanent negotiation mode,” adding that even after a deal with the US, the EU must “keep up the pressure.”