An employee works on a battery box production line of a joint venture set up by France's Renault group and Chinese automotive supplier Minth Group in Ruitzin, France, February 23, 2024. /Xinhua
Over the past six decades, the economic and trade cooperation between China and France has not only contributed to the development of both countries' economies but also injected momentum into the global economic recovery.
As they celebrate the 60th anniversary of China-France diplomatic ties this year, both countries seek to deepen their economic ties.
Kevin P. Gallagher, professor of global development policy and director of the Boston University Global Development Policy Center, told CGTN that France and China can lead the way in helping recreate globalization again since there's been a little bit of a retreat due to other tensions.
"The global economy needs integration," said Gallagher, adding that France and China have a lot of trust in each other because they have a long history of diplomatic ties.
China and France are highly complementary economically, which creates vast opportunities for trade and investment. China has a competitive advantage in manufacturing electronic products and machinery, while France excels in aerospace, nuclear energy, high-end consumer goods, agricultural products and wines.
France has become China's third-largest trading partner in the European Union, with a total bilateral trade volume of $78.9 billion in 2023. It is also China's third-largest source of actual investment. Meanwhile, China is France's largest trading partner in Asia and the seventh-largest globally.
A night view of Wuxi, a city in east China's Jiangsu Province. /CFP
In recent years, French enterprises have been increasing their investments and expanding their businesses in China. Data showed that over 6,000 French companies had been established in China by the end of 2021, with a total investment of over $18 billion.
Wuxi, a city in east China's Jiangsu Province, is an important investment destination for French companies. So far, leading French enterprises, such as Schneider Electric and Legrand Group, have invested in 48 projects in the city with a total investment of $980 million, according to data from the Wuxi government.
The Chinese-French (Wuxi) Industrial Cooperation Park was inaugurated on July 18, 2023. That same day, agreements for five projects with a total investment exceeding $1 billion were signed.
According to a 2023 survey of French companies in China conducted by the French Chamber of Commerce and Industry in China, 47 percent of member companies are planning to further invest in China.
Chinese investors are also welcome in France, especially in the sector related to electric vehicles, batteries and energy transition. In the "battery valley" in northern France, Chinese enterprises, such as Envision AESC and XTC New Energy, actively join in local projects to produce electric vehicles and their batteries, a partnership widely appreciated by a region keen on green re-industrialization.
As of 2021, China has been the largest Asian country in terms of investment and job creation in France for three consecutive years, according to a report by Business France. China's total direct investment in France stands at nearly $4.9 billion by the end of 2021.
Speaking at the 9th Europe Forum 2023, Lu Shaye, the Chinese Ambassador to France, said there is huge potential for China-France cooperation in high-end manufacturing, modern service industries, digital economy and green transition.
"A robust China-France relationship can play a pivotal guiding role in the broader China-Europe relationship. China and Europe share extensive common interests," Lu said.
A China-Europe freight train bound for Paris, France, departs from Yiwuxi Railway Station, Jinhua City, east China's Zhejiang Province, March 1, 2024. /CFP
China and France have also been exploring third-party market cooperation. As a new model of international cooperation, third-party market cooperation refers to partnerships between Chinese companies and their counterparts in developed countries to do business in markets in the developing world.
The model can align China's advantageous production capacity and developed countries' advanced technology with developing countries' needs. It also plays a positive role in boosting the confidence of global investors.
For instance, China and France collaborated in operating the Kribi Deep Seaport in Cameroon. The growth of port operations has not only significantly improved Cameroon's economic development but also benefited landlocked African countries such as the Central African Republic and Chad.
In February 2022, China and France signed a document on the list of the fourth-round demonstration projects for developing third-party market cooperation. The list includes seven projects worth over $1.7 billion, covering infrastructure, environmental protection, new energy, and others. These projects were launched in areas including Africa and Central and Eastern Europe.
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China's investment is turning N. France to Europe's 'Battery Valley'