Future of Sino-French trade ties to focus on high-tech
Complementary exports make for stable interdependence between two sides
The future of ChineseFrench business ties will be based on trade and enhanced cooperation in areas including nuclear energy, aviation, high-end manufacturing and services, said officials and business leaders from both sides.
“Even though both the Chinese and French economies have been hit by declining global demand for goods and services, the degree of interdependence between the two remains stable in bilateral cross-industry trade,” said Feng Yaoxiang, a spokesman for the Beijing-based China Council for the Promotion of International Trade.
Bilateral trade volumes between China and France grew by 15.4 percent year-onyear to $48.87 billion between January and November 2017. China remained France’s fourth-largest trade partner after Germany, the Netherlands and the United Kingdom, data from the General Administration of Customs showed.
China exports construction machinery, manufacturing equipment, steel, electronics, textiles, garments and household appliances to France. France’s exports to China include passenger vehicles and aircraft, and water treatment, chemical and pharmaceutical products, wine, and agricultural and fashion products.
“China will continue to export consumer goods in exchange for France’s high-tech products, such as electronic products, aviation-related products, vehicles and parts, and medical equipment,” said Feng. “Most of their imports are complementary. Therefore, it isn’t direct competition.”
The China arm of Schneider Electric, with its headquarters in Rueil-Malmaison, France, plans to collaborate with various businesses in China to integrate the internet of things, or IoT, into traditional industries.
“In the long run, the application of the IoT will not only push the manufacturing industry ahead but other related fields in China too, such as sewage disposal, healthcare, transportation and energy,” said John Tuccillo, senior vicepresident of industry and government affairs at Schneider Electric.
“Making different systems functioning together is what makes the IoT different from the internet of consumption. The IoT will not only make manufacturing more automated, but also connect different systems in China’s giant manufacturing network,” he said.
Eager to strengthen their development ability, the Chinese and French governments discussed expanding cooperation earlier in 2017, particularly within the G20.
“As staunch supporters of open economies and economic globalization, China and France share more interests in tackling global challenges,” said Chen Bin, executive vicepresident of the China Machinery Industry Federation.
Although anti-globalization is on the rise and European integration is suffering setbacks, China and France share a common stance on major global issues, such as economic globalization and multilateralism, opposition to protectionism and commitment to the Paris climate agreement.
Sang Baichuan, a director of the Institute of International Business at the University of International Business and Economics in Beijing, said that the Belt and Road Initiative will help both China and France to further realize their goals for economic growth.