French cosmetics sector anticipates Xi's visit to obtain a reprieve from Chinese import rules

The world-leading French cosmetics sector is counting on talks between Xi Jinping and Emmanuel Macron next week to help minimize the impact on French companies of strict new Chinese import rules requiring the sharing of formulas and manufacturing know-how.

President Xi's first visit to Europe in five years comes against a backdrop of tense trade relations, with the European Union threatening tariffs on China's electric vehicle and green energy industries.

But progress toward an agreement between France and China on the regulation of cosmetics, including lipsticks and fragrances, could be a bright spot in discussions in Paris next week.

President Macron's office said before the meeting that cosmetics would be an issue of “great attention” and that they would seek to “find a solution that also protects the interests of our companies.”

France is the world's leading exporter of cosmetics and last year sent almost 2 billion euros ($2.15 billion) in makeup and skin care products to China, the second largest country only surpassed by aerospace products.

New Chinese safety rules taking effect next year threaten that trade.

Starting in May 2025, cosmetics exporters will be required to share detailed information about their manufacturing processes with Beijing and host Chinese inspectors in their factories, a move that raises concerns about losing control of intellectual property.

Under a plan proposed in talks between the two sides last year, French authorities would take responsibility for ensuring the safety of some of their exports without the need for Chinese inspections.

France would grant some similar measures to China, but it was unclear what areas they would cover.
“This reciprocity will guarantee the highest safety standards for Chinese consumers,” said Emmanuel Guichard, secretary general of the French cosmetics industry association (FEBEA), adding that the plan could be formalized during talks between Xi and Macron.

FEBEA members include L'Oreal, LVMH and Coty.

Under the agreement, France's anti-fraud and consumer watchdog (DGCCRF) would ensure the security of a number of French manufacturers that qualify for “whitelist” status.

The agency said in a report published Friday on its recent activities that it held its first meeting on the certification of French cosmetics for export to China with China's National Medical Products Administration (NMPA) in December.

The Elysée did not immediately respond to a request for comment.
The DGCCRF did not immediately respond to a request for comment. The NMPA could not be reached for comment regarding a holiday weekend.