By
Bloomberg
Published
April 18, 2024
Billionaire Bernard Arnault said he hopes a planned visit to France next month by China's Xi Jinping will help smooth trade relations between Paris and Beijing.
“I hope that economic tensions will calm down and that we can continue a strong economic collaboration with China,” Arnault, chief executive of LVMH Moet Hennessy Louis Vuitton SE, told reporters after Thursday's annual general meeting in Paris.
The comments follow China's decision to launch an investigation into alleged dumping practices by European Union cognac makers. In January, LVMH, owner of Hennessy Cognac, said it was working with the country on that investigation.
That move by China came after France was the main sponsor of an investigation the EU opened last year into Chinese subsidies for electric vehicles.
Bloomberg News also reported last year that European cosmetics makers were alarmed by Chinese lawsuits regarding their trade secrets. LVMH owns perfume and makeup brands such as Christian Dior, Guerlain and Fenty Beauty by Rihanna.
Arnault's hopes for a quick resolution to the trade disputes may be disappointed as the EU considers several new investigations into China. The bloc is investigating whether Beijing provided illegal support to wind farms on the mainland, whether it has launched investigations into subsidies to solar and railway companies, and will soon launch an investigation into China's procurement of medical devices.
Arnault, the world's richest person, said he believes China will succeed in restarting its economy amid weak consumer demand.
Earlier this week, LVMH said first-quarter organic revenue fell 6% in Asia, excluding Japan, a region that contributes a third of the group's total revenue.
