Trade tensions overshadow Macron’s showy White House visit

The French and US flags adorn the Eisenhower Executive Office Building next to the White House for the state visit of French President Emmanuel Macron, Washington, D.C., Nov. 29, 2022. (AFP)
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Updated 29 November 2022
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Trade tensions overshadow Macron’s showy White House visit

  • This is the first formal state visit of Biden’s presidency and US officials say the choice of France reflects both deep historical ties and their intense current partnership in confronting Russia
  • The breadth of Macron’s entourage — including the foreign, defense and finance ministers, as well as business leaders and astronauts — illustrates the importance Paris has put on the visit

WASHINGTON: French President Emmanuel Macron was set to arrive in Washington Tuesday for a rare state visit hosted by Joe Biden, but hard-nosed disagreements about US-EU trade will loom over the pomp and ceremony at the White House.
Due to Covid delays, this is the first formal state visit of Biden’s presidency and US officials say the choice of France for the honor reflects both deep historical ties and their intense current partnership in confronting Russia over its war in Ukraine.
Biden will host Macron with a full ceremonial military welcome, a poignant visit to Arlington National Cemetery, an Oval Office sit down, a private dinner with their spouses Wednesday and the state banquet on Thursday, where Grammy-award winning American musician Jon Batiste will perform.
Compared to Macron’s edgy first experience of a state visit as the guest of Donald Trump in 2018, this trip — concluding with a stop Friday to the once-French city of New Orleans — will be a carefully choreographed display of transatlantic friendship.
Certainly the diplomatic furor that erupted last year when Australia canceled a deal for French submarines and instead signed up for US nuclear subs is now buried.
But even with little risk of Trump-style fireworks, Macron has major grievances to air.
Top of these is tension over Biden’s signature green industry policy, the Inflation Reduction Act, or IRA, which will pump billions of dollars into climate-friendly technologies, with strong backing for American-made products.
Europeans fear an unfair US advantage in the rapidly emerging sector just as they are reeling from the economic consequences of the Ukraine war and Western attempts to end reliance on Russian energy supplies.
Talk in Europe is now increasingly on whether the bloc should respond with its own subsidies for homegrown products, effectively starting a trade war.
“China favors its own products, America favors its own products. It might be time for Europe to favor its own products,” French Finance Minister Bruno Le Maire told France 3 radio on Sunday.
Martin Quencez, deputy director of the Paris office of think-tank GMF, said Macron will tell Biden “there’s a contradiction between an administration that constantly talks of alliances... and at the same time takes a decision like the IRA that will impact allies’ economies.”
Another gripe in Europe is the high cost for US liquid natural gas exports — surged to try and replace canceled Russian deliveries.
Responding to accusations that the United States is effectively profiteering from the Ukraine war, a senior US administration official said this was a “false claim.”
The official also played down IRA-related tensions, saying a “very constructive set of conversations” is underway on how to prevent European companies from being shut out.
To underline the importance of the issue for Paris, Macron met with dozens of business executives ahead of his departure to Washington, urging them to keep investing in France. These included representatives from US giants Goldman Sachs and McDonald’s.
The breadth of Macron’s entourage — including the foreign, defense and finance ministers, as well as business leaders and astronauts — illustrates the importance Paris has put on the visit.
However, at the White House, a senior official said the main goal is to nurture the “personal relationship, the alliance relationship” with France — and between Biden and Macron.
That more modest sounding goal will include improving coordination on helping Ukraine to repel Russia and the even more vexing question of how to manage the rise of the Chinese superpower.
“We are not allies on the same page,” one adviser to Macron told AFP, forecasting “challenging” talks with Biden.
Despite his strong support for Kyiv, Macron’s insistence on continuing to maintain dialogue with Russian President Vladimir Putin has irked American diplomats.
The China question — with Washington pursuing a more hawkish tone and EU powers trying to find a middle ground — is unlikely to see much progress.
“Europe has since 2018 its own, unique strategy for relations with China,” tweeted French embassy spokesman Pascal Confavreux in Washington.
A senior US official said even if their approaches were “not identical,” they should be at least “speaking from a common script.”


Britain’s Starmer ends China trip aimed at reset despite Trump warning

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Britain’s Starmer ends China trip aimed at reset despite Trump warning

  • Keir Starmer’s visit was the first to China by a British prime minister in eight years
  • Leaders from France, Canada and Finland have flocked to Beijing in recent weeks
SHANGHAI: British Prime Minister Keir Starmer wrapped up a four-day trip to China on Saturday, after his bid to forge closer ties prompted warnings from US President Donald Trump.
Starmer’s visit was the first to China by a British prime minister in eight years, following in the footsteps of other Western leaders looking to counter an increasingly volatile United States.
Leaders from France, Canada and Finland have flocked to Beijing in recent weeks, recoiling from Trump’s bid to seize Greenland and tariff threats against NATO allies.
Trump warned on Thursday it was “very dangerous” for Britain to be dealing with China.
Starmer brushed off those comments on Friday, noting that Trump was also expected to visit China in the months ahead.
“The US and the UK are very close allies, and that’s why we discussed the visit with his team before we came,” Starmer said in an interview with UK television.
“I don’t think it is wise for the UK to stick its head in the sand. China is the second-largest economy in the world,” he said.
Asked about Trump’s comments on Friday, Beijing’s foreign ministry said “China is willing to strengthen cooperation with all countries in the spirit of mutual benefit and win-win results.”
Starmer met top Chinese leaders, including President Xi Jinping and Premier Li Qiang, on Thursday, with both sides highlighting the need for closer ties.
He told business representatives from Britain and China on Friday that both sides had “warmly engaged” and “made some real progress.”
“The UK has got a huge amount to offer,” he said in a short speech at the UK-China Business Forum at the Bank of China.
He signed a series of agreements on Thursday, with Downing Street announcing Beijing had agreed to visa-free travel for British citizens visiting China for under 30 days, although Starmer acknowledged there was no start date for the arrangement yet.
The Chinese foreign ministry said only that it was “actively considering” the visa deal and would “make it public at an appropriate time upon completing the necessary procedures.”
He also said Beijing had lifted sanctions on UK lawmakers targeted since 2021 for their criticism of alleged human rights abuses against China’s Muslim Uyghur minority.
“President Xi said to me that that means all parliamentarians are welcome,” Starmer said in an interview with UK television.
He traveled from Beijing to economic powerhouse Shanghai, where he spoke with Chinese students at the Shanghai International College of Fashion and Innovation, a joint institute between Donghua University and the University of Edinburgh.
On Saturday, Starmer visited a design institute and met with performing arts students alongside British actress Rosamund Pike, who spoke of her children’s experience learning Mandarin.
Later on Saturday, Starmer will arrive in Tokyo for a meeting with Japanese counterpart Sanae Takaichi.
Visas and whisky
The visa deal could bring Britain in line with about 50 other countries granted visa-free travel, including France, Germany, Australia and Japan, and follows a similar agreement made between China and Canada this month.
The agreements signed included cooperation on targeting supply chains used by migrant smugglers, as well as on British exports to China, health and strengthening a bilateral trade commission.
China also agreed to halve tariffs on British whisky to five percent, according to Downing Street.
British companies sealed £2.2 billion ($3 billion) in export deals and around £2.3 billion in “market access wins” over five years, and “hundreds of millions worth of investments,” Starmer’s government said in a statement.
Xi told Starmer on Thursday that their countries should strengthen dialogue and cooperation in the context of a “complex and intertwined” international situation.
Relations between China and Britain deteriorated from 2020 when Beijing imposed a national security law on Hong Kong and cracked down on pro-democracy activists in the former British colony.
However, China remains Britain’s third-largest trading partner, and Starmer is hoping deals with Beijing will help fulfil his primary goal of boosting UK economic growth.
British pharmaceutical group AstraZeneca said on Thursday it would invest $15 billion in China through 2030 to expand its medicines manufacturing and research.
And China’s Pop Mart, makers of the wildly popular Labubu dolls, said it would set up a regional hub in London and open 27 stores across Europe in the coming year, including up to seven in Britain.