US President Joe Biden will next week host French President Emmanuel Macron, who is visiting to strengthen Franco-American friendship and prevent fierce economic competition between Europe and the United States, reports Reuters.

More than a year after Washington, London and Canberra scrapped a major French submarine sale deal and pushed Franco-US relations to the brink, the two countries are expected to show unity over shared threats from Russia and China.

But the contentious issue during the meeting will be the US Inflation Reduction Act (IRA), reports Reuters.

Europeans are warning that a huge package of subsidies aimed at US manufacturers could deal a fatal blow to European industries, which are already recovering from high energy prices caused by the war in Ukraine.

Macron will try to convince the US that it is in its interest not to weaken European companies at a time when Western allies face stiff economic competition from China, which is said to be using its economic power "as a leverage for diplomacy".