(Bloomberg) – Billionaire Bernard Arnault said he hopes for a planned visit by China to France next month Xi Jinping will smoothen trade relations between Paris and Beijing.
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“I hope that economic tensions will ease and that we can continue solid economic cooperation with China,” Arnault, the CEO 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, the owner of Hennessy Cognac, said it was working with the country on that investigation.
China’s move came after France was the main funder 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 concerned about Chinese demands 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 wars may be disappointed as the EU considers several new investigations into China. The bloc is investigating whether Beijing has provided illegal support to wind farms on the continent, subsidized investigations into solar energy and railway companies, and will soon launch an investigation into Chinese purchases of medical equipment.
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 sales fell 6% in Asia excluding Japan, a region that accounts for a third of the group’s total sales.
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