Addressing the U.S. lawmakers on Wednesday, French President Emmanuel Macron said that the new climate-related law was "super aggressive" toward European companies.

He criticized the U.S. for risking "fragmenting the West" with a climate law during a speech at the French embassy in Washington, D.C. He added that the bill "creates such differences between the United States and Europe that all those who work in many companies (in the U.S.), they will just think, 'We don't make investments any more on the other side of the Atlantic.'"

Biden's signature climate law in August this year includes a $369 billion package of green subsidies to benefit companies active in the sustainable development sector. The subsidies would be allocated to encourage companies to produce electric vehicles, batteries, solar panels and wind turbines in the U.S.

Biden signed the subsidies as part of the $430 billion Inflation Reduction Act, aiming to finance the transition to green energy. It is expected to reduce U.S. greenhouse gas emissions by around 40 percent of 2005 levels by 2030. The bill is seen as the biggest climate change package in U.S. history.

While the French president agreed with the U.S. commitment to curb climate change, he expressed concern that the subsidies for U.S.-made products would put European companies at an unfair disadvantage.

Against the backdrop of the current energy crisis as well as rifts within Europe over how to tackle soaring energy costs, the U.S. has become an ideal place for European manufacturers to relocate their industries.

In early November, Macron said the act "is not in line with the rules of the World Trade Organization and that it is not in line with friendship" after a meeting with representatives of 50 French industrial sites.

The Biden administration defends the bill as necessary to boost the electric cars sector and further the fight against climate change in the U.S.

The Inflation Reduction Act is a historical investment that will deal with climate change in a real way, White House Press Secretary Karine Jean-Pierre said at a press briefing on November 30.

"There's a number of provisions that will contribute to the growth of clean energy sector globally," she added. "It presents significant opportunities for European firms, as well as benefits to EU energy security. And this is not a zero-sum game for us."

(With input from AP and Reuters)