CIIE highlights strength of China-France trade

Expo offers impressive platform for firms to thrive through greater cooperation

Strengthening economic and trade relations between China and France will be mutually beneficial, providing both countries with advantages and adding positive momentum to the global economy amid growing recessionary risks, said government officials and business leaders.

During her meeting with Chinese Commerce Minister Wang Wentao in Shanghai on Nov 3, Sophie Primas, French minister delegate for foreign trade and French nationals abroad, attached to the Minister for Europe and Foreign Affairs, said that France is willing to deepen economic and trade ties with China and expressed her pleasure at France's role as a guest country of honor at the seventh China International Import Expo again this year.

The seventh edition of the CIIE, taking place in Shanghai from Tuesday to Sunday, has attracted the participation from over 100 French companies, including notable names like Schneider Electric, LVMH Group and Kering Group, according to China's Ministry of Commerce.

This marks the largest representation among European Union member states, underscoring the strong interest French companies hold in the Chinese market.

Enduring interdependence

Despite a slowdown in global demand for goods in recent years, the strong interdependence between the two countries endures, supported by a stable, cross-industry trade relationship, said Gao Lingyun, a researcher at the Institute of World Economics and Politics, affiliated with the Chinese Academy of Social Sciences in Beijing.

"By enriching business ties, both countries can gain greater access to each other's markets, benefiting industries ranging from technology and manufacturing to agriculture and luxury goods," said Gao. "This access offers companies with new revenue streams and market opportunities, supporting economic stability and growth for both nations."

Echoing that sentiment, Bai Ming, a member of the Academic Degree Committee at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said that as two influential economies, a strong China-France partnership contributes to global economic stability. Their cooperation can help counter recessionary trends by boosting trade values, creating jobs and enhancing confidence in international markets.

China-France trade value amounted to 555.11 billion yuan ($78.12 billion) in 2023, growing by 3.1 percent year-on-year, statistics from China's General Administration of Customs show.

China exports to France mainly construction machinery, manufacturing equipment, steel, electronics, textiles, garments and household appliances to France.

In addition to passenger vehicles and aircraft, water treatment, chemical and pharmaceutical products, France's exports to China also include fashion, agricultural and energy infrastructure products.

Prompted by China's opening-up measures and the "France 2030" investment plan, the two sides will likely scale up trade and investment in fields such as the digital economy, trade in services, new energy and high-end manufacturing in the years ahead, said Tang Yihong, a professor specializing in cross-border investment at the University of International Business and Economics in Beijing.

Launched by the French government in 2021, the "France 2030" investment plan aims to support the transformation of sectors of excellence in its economy in the automotive, aerospace, digital, green industry, biotechnology, culture and healthcare areas, according to Business France, a French government agency promoting the country's exports and attracting foreign investment.

Growth driver

French tire and mobility company Michelin Group has increased passenger car tire capacity at its factory in Shenyang, Liaoning province, this year, to meet soaring market demand.

The move has been prompted by the enthusiasm shown by Chinese automakers and technology companies in adopting new technologies, which has opened up numerous opportunities and resulted in a significant increase in the use of electric vehicles, new energy sources and new materials.

As China creates more favorable conditions to cultivate new quality productive forces, Matthew Ye, CEO and president of Michelin China and Mongolia, said the key factor behind this is the growth driver related to sustainability.

This has led traditional industries toward high-end, intelligent and green transformations, while fostering the emergence of new industries, demand and collaboration.

New quality productive forces signify a paradigm shift in productivity, primarily propelled by revolutionary technological breakthroughs, the innovative allocation of production factors, and profound industrial transformation and upgrading.

The French group created a booth with the theme of "Michelin Adventurer" this year, featuring a China and even Asia premiere of numerous new tire products during the seventh CIIE.

"This year marks the 35th anniversary of Michelin in China. We have created and experienced countless adventures, which not only include numerous technological breakthroughs and product innovations but also bring extraordinary experiences that change people's lives," said Ye.

Long-term partnership

Cathay Capital, a global investment platform, signed a memorandum of understanding with French pharmaceutical group Sanofi to deepen innovation cooperation in the healthcare field early this week.

This collaboration not only strengthens their long-term partnership but also supports China-France cooperation and the transformation and upgrading of China's pharmaceutical industry, said the company in a statement.

In addition to fostering an innovation ecosystem for Chinese pharmaceutical advancements, this partnership integrates Sanofi's extensive technical expertise in the global pharmaceutical industry with Cathay Capital's industry insights and cross-border investment experience, said the statement.

Cathay Capital to date has invested in more than 47 healthcare-related companies worldwide, promoting global healthcare cooperation and development.

"The signing of this memorandum of understanding not only represents a deep strategic alignment between both parties but also marks a significant milestone in our shared commitment to advancing China's healthcare sector," said Cai Mingpo, founder and chairman of Cathay Capital.

Also upbeat about the Chinese market, French wine and spirits group Pernod Ricard brought nearly 70 cognac and whiskey products from countries and regions including France, Scotland and Ireland to the seventh CIIE this year.

The showcase included the full range of Martell Cognac products, as well as several whiskey brands under its product line, such as Royal Salute, Chivas Regal and Ballantine's.

Meanwhile, the French group also unveiled its locally produced whisky — The Chuan — making its debut at the event. The product is made at Pernod Ricard's whisky distillery in Emeishan, a city in Southwest China's Sichuan province.

"We are proud to put China on the world whisky map by presenting this exceptional malt whisky from The Chuan," said Jerome Cottin-Bizonne, CEO of Pernod Ricard China. "As a large international spirits group, we are committed to proactively responding to the burgeoning enthusiasm and diversified demands of Chinese consumers."