Bernard Arnault, the chairman of LVMH, the French luxury goods group, distanced himself from the Dalai Lama with a show of support for Beijing yesterday amid growing concern in France over Chinese calls for a boycott of Gallic products.

France’s best-known business leader spoke out with Chinese internet users targeting Paris for criticism following the pro-Tibetan demonstrations that accompanied the Olympic torch relay.

Consumers are being urged to boycott groups such as Carrefour, the supermarket chain, and Mr Arnault’s celebrated LVMH brands, which include Louis Vuitton, Hennessy and Fendi.

With French exports to China worth €9.1 billion (£7.3 billion) last year, officials and industrialists in Paris are keen to smooth over the row.

Mr Arnault is in the front line following a widespread but, he says, unfounded rumour on Chinese websites that his group had provided financial support to the Dalai Lama.

With Goldman Sachs predicting that China will become the world's biggest luxury goods market within a decade, alarm bells are ringing at LVMH’s head office in Paris.

“I refute categorically the allegations over backing for the Dalai Lama,” Mr Arnault said.

He went on: “I understand why the Chinese population could be affected by the attacks against its country.

“Even if it may be shocking to see what’s happening in Tibet, it’s equalling shocking to see China being attacked,” he said in an interview with

the newspaper Le Figaro. Mr Arnault urged his compatriots to “stop trying to teach lessons, since there are a lot of things which need improving in the world and even here in Europe”.

Carrefour is also the butt of virulent criticism, partly because Mr Arnault is the joint owner of a 10 per cent stake in the chain and partly because it is among the most visible French companies in China.

The company has 122 hypermarkets and more than 280 hard discount stores there.

“Boycott Carrefour. Slap them in the face. Let the beast disappear from Chinese territory,” one comment on a chat forum said.

After protests outside Carrefour stores in Beijing this week and calls for a consumer boycott on May 1, the group sought to appease the tide of anger.

It issued a statement to deny playing any role in Chinese internal political affairs or international relations and to pledge support for the Beijing Games.

Although there have been demonstrations throughout the Olympic torch relay, France has been singled out after protestors repeatedly broke through police cordons in Paris and at one point attacked Jin Jing, a 27-year-old wheelchair-bound athlete.

Jiang Yu, a Chinese Foreign Ministry spokeswoman, said: “You can’t on the one hand talk of the importance of the relationship between France and China and, on the other, see things which the Chinese people can’t understand and don’t accept.”

Anne-Marie Idrac, the French Overseas Commerce Minister, said there was no indication yet of a fall in sales of French goods in China.

Times Recommends

• Toyota recalls 437,000 cars including Lexus
• Myners says bonuses are bleeding pension funds
• Japanese company faked safety reports on seats