French President Emmanuel Macron has urged on Tuesday for more Chinese investment in key sectors in Europe.
Speaking at the World Economic Forum on Tuesday, Macron said that “China is welcome, but what we need is more Chinese foreign direct investment in Europe in some key sectors to contribute to our growth.”
According to the French President, this investment should involve transferring technologies, not only exports of “some devices […] or products which sometimes don’t have the same standards or are much more subsidized than the ones being produced in Europe.”
The comments were made about a month after Emmanuel Macron visited Beijing.
Attending a French-Chinese Business Council meeting alongside China’s President Xi Jinping, Macron called in December for “mutually beneficial projects” in sectors where he acknowledged China’s technological advantage, and urged Chinese firms to play a role in Europe’s development.
These included batteries, electric vehicles, and solar panels, among other sectors where the technological gap with China is widening.
EV Production and Targets
During the same visit, Macron told reporters that France supports “a European preference [on electric vehicles], because we must protect our European production base.”
By then, he called for all vehicles sold in Europe to contain at least 75% locally sourced components — which is the current level seen in internal combustion engine (ICE) vehicles.
As the EU works towards protecting its auto industry, it has set additional tariffs (on top of the baseline import duty of 10%) on Chinese EVs in late 2024, of which the rate varies depending on the automaker.
Last week, the EU issued guidance on “price undertaking” offers from Chinese manufacturers, aimed at replacing the high tariffs on EV imports.
The European Commission said the EV tariffs will remain in place despite last week’s developments, and further denied reports that they would be extended to hybrid vehicles.
2035 ICE Ban
The proposal was part of a package of demands submitted to Brussels ahead of the European Commission’s review of the 2035 ban on the sale of ICE vehicles — a target the bloc partially reversed in mid-December.
Last October, Macron warned that “if we abandon the 2035 target, forget about European battery plants.”
Critics of a rollback — including Spain and the Nordic countries — said scrapping the ban risked slowing the transition to electric vehicles and deterring investment.
Despite initially siding with the critics, as the new auto plan was announced, the French Presidency described it as “balanced” overall.
France’s environment minister took the opposite view, criticising the “flexibility” granted to petrol and diesel cars and saying Paris hoped to prevent it from becoming law.
Battery Production
The first EV battery factory in France was opened in mid-2023, in Billy Berclau.
This “gigafactory,” part of Macron’s “reindustrialization” plan for the country, is owned by Automotive Cells Company, a joint venture between French giant TotalEnergies, Mercedes-Benz and Stellantis.
It supplies batteries to Stellantis‘ brands like Opel or Citroen.
Additionally, Sino-Japanese group AESC-Envision built a EV battery plant near the city of Douai, in Northern France.
Attending the launch ceremony last June, Macron said that Douai is “turning a new page in the history of French industry,” as the inauguration of the AESC gigafactory, launched as part of Choose France in 2021, “is the culmination of eight years of determined effort.”
“This flagship project reflects a uniquely French vision of ecological transition,” the President added, highlighting “innovation, development, job creation, and sustainable ambition.”
Since it began production last year, the plant has supplied batteries to French automaker Renault. It can power up to 200,000 electric vehicles per year.
Macron vs Trump
The European Union is now in a trade dispute with the United States, after Trump announced a new round of tariffs on several countries — including France.
The measures were imposed over a political issue involving Denmark’s autonomous territory, Greenland.
Trump wrote on Monday that “there can be no going back” when it comes to Greenland, to which the European Commission President Ursula von der Leyen responded on Tuesday, stating that the tariff threat was “a mistake, especially between longstanding allies.”
Over the weekend, France’s President Emmanuel Macron urged the implementation of the EU anti-coercion mechanism on the United States.
Additionally, after reports that the Macron was preparing to decline Trump’s invitation for the Board of Peace initiative, Trump threatened France with higher duties.
“I’ll put a 200% tariff on his wines and champagnes, and he’ll join, but he doesn’t have to join,” the US President stated.
Chinese Car Sales in France
The Stellantis backed Chinese brand Leapmotor emerged as the standout performer in the French market last year while MG saw its momentum cool after years of rapid expansion.,
According to official registration data, Leapmotor registered 3,561 vehicles in France for the full year, a nearly tenfold increase from 2024.
The brand sells both battery-electric and hybrid vehicles in Europe.
MG, owned by China’s giant SAIC Motor, remained the dominant Chinese brand in France with 33,729 registrations for the year, up 37.1% from 2024.
The brand also offers both fully electric models and plug-in hybrids in its European lineup.
However, MG‘s December figures showed signs of deceleration, with registrations falling 9.2% year-over-year to just below 7,000 units.
XPeng posted 3,313 registrations for 2025, a 548% increase from the prior year. The brand arrived in the French market in mid 2024.
While the Guangzhou-headquartered brand launched its first ever hybrid vehicles in China during 2025, its European lineup remained fully electric throughout the year.
Lynk & Co, the Geely-owned brand, recorded 726 registrations for the year, up 39.9%.
The brand sells plug-in hybrid models in Europe alongside its subscription-based service.
Skyworth, which offers only battery-electric vehicles, saw 639 annual registrations.
France’s overall passenger car market declined 5% in 2025 to 1.63 million registrations, according to the data.
