Pro-innovation environment boosts French business confidence in China
The French Chamber of Commerce and Industry in China said it is optimistic about the prospects of the Chinese economy, and predicted further growth in business cooperation between the two countries, according to a report in the Beijing-based Global Times.
“In the past, China’s attraction was mainly constituted by the huge local market and low costs, but today the story has changed,” the paper quoted a senior official from the chamber, which is also known as CCI France Chine.
Adhering to its strategy of innovation-driven development, China is boosting its technological innovation and research. Such a businessfriendly atmosphere makes French companies optimistic too, the official said.
The 19th National Congress of the Communist Party of China manifested the strong will of the government to speed up reforms in areas such as the legislative system, State-owned enterprises and financial supervision, the official said.
Such reforms are significant not only to China, but also to French enterprises that operate in China, according to CCI France Chine.
The chamber, established in 1992, is one of the three key French chambers of commerce and industry around the world. It now has 1,603 members.
Its missions range from bringing together the French and Chinese business communities, to protecting the interests of its members and providing a full range of services to facilitate market access between businesses from the two countries.
Saint-Gobain SA — a French company mainly engaged in the sale of construction materials, especially glass and cement mortar — is one of many companies benefiting from China’s improving business environment. It reported revenue of over 1.15 billion euros ($1.37 billion) in 2016.
The paper quoted a senior executive of the company saying that French businesses are sensing the strong desire of the Chinese government to ease market access for overseas players and that will bring huge opportunities for them.
Currently, 4 to 5 percent of Saint-Gobain’s global sales are in the Chinese market and the company aims to double its sales there over the next three to five years.
Dongfeng Renault Automotive Co is also grasping the opportunities brought about by the improving business environment in China.
Francois Provost, CEO of Dongfeng Renault, told the paper that Renault Group regarded China as the largest automotive market in the world and the global leader for the future of the transport industry.
Renault therefore regards China as a core part of its global strategy to sustain its medium-term growth, Provost said. He added Dongfeng Renault will grasp the new opportunities brought by electric vehicles and integrate internet technologies to upgrade its online sales platform.
Gregory Pere, marketing chief of French wine dealer Paradox, said that one of the most surprising changes that took place in the Chinese market concerns wine.
“Ten years ago, Chinese people bought wine as gifts or for business banquets, but now, more and more Chinese customers buy wine for themselves. They have become interested in wine and are learning more about it,” Pere said.
Major changes have also taken place in wine sales, and online purchasing has become mainstream. It is a new challenge for his company, according to Pere.
Paradox has long been working with supermarkets such as Carrefour, Wal-Mart and RTMart, and now it is expanding its online market, setting up online shops on major Chinese e-commerce platforms such as JD and Alibaba.
“Currently, our online sales revenue is not very big. We are trying to change our ideas and are considering how to expand the online business,” the paper quoted Pere as saying.
“One of the major steps is that the company is planning to launch its WeChat shop, through which customers can locate the nearest shops on their smartphones and reserve our products online, and then, we will deliver the products to the destinations within one hour,” Pere said.