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China – Economic diplomacy – 24th French-Chinese Joint Commission on Trade and Investment (Paris, October 3, 2016)

Jean-Marc Ayrault, Minister of Foreign Affairs and International Development, received Gao Hucheng, Minister of Trade of the People’s Republic of China, for the 24th French-Chinese Joint Commission on Trade and Investment.

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France and China

Political relations

The recognition of the People’s Republic of China on 27 January 1964 was the starting point of official relations between the People’s Republic of China and the French Republic. France was thus the first major Western country to appoint a full-fledged ambassador to Beijing. In 2014, France and China commemorated the 50th anniversary of the establishment of diplomatic relations between the two countries.

The French-Chinese relationship, which was termed a “full partnership” in the Joint Statement of 16 May 1997, rose to the level of a “comprehensive strategic partnership” in 2004. The French-Chinese Partnership, which is confirmed at each high-level bilateral meeting, is based on the belief that a dialogue of confidence with China is likely to further the country’s change towards a more sustainable development model founded on the rule of law and which will help foster peace and prosperity at international level.

The comprehensive strategic partnership between France and China is fuelled by an intense series of high-level bilateral visits. The Heads of State meet on a regular basis, during State visits, official visits, or on the sidelines of major international summits.

On the French side, the President of the French Republic made two State visits to China, in April 2013 and November 2015. On that occasion, the adoption on 2 November 2015 of a joint Presidential statement on climate change gave decisive impetus to negotiations on an ambitious and legally binding agreement at the Paris Climate Conference (COP21). The French Prime Minister visited China in January 2015. Mr Laurent Fabius, as French Minister of Foreign Affairs, has made 12 visits to China: he visited Beijing in July 2012, Beijing and Shanghai in April 2013, Beijing in September 2013, Beijing, Fuzhou and Tianjin in February 2014, Beijing, Hangzhou and Shanghai in May 2014, Beijing and Shanghai in October 2014, Beijing and Tianjin in May 2015, Beijing in September 2015, and Beijing and Chongqing in November 2015.

On the Chinese side, the Chinese President, Xi Jinping, made a state visit France in March 2014 and an official visit in November 2015, on the margins of the Paris Climate Conference. The Chinese Prime Minister visited France from 29 June to 2 July 2015. The adoption on that occasion of a joint statement on civil nuclear energy cooperation and of a joint statement on partnerships in third-party markets demonstrated the will of both our countries to strengthen their comprehensive partnership.

A cooperation plan adopted on the occasion of the Chinese President’s visit to France in March 2014 set the major operational guidelines for the French-Chinese partnership. The French-Chinese relationship is developing in three priority areas: strengthen political dialogue, work to rebalance economic relations in a spirit of reciprocity and encourage greater exchanges between civil societies, in particular between young people from the two countries.

France’s partnership with China is structured by a number of mechanisms for dialogue. The latest session of the France-China Strategic Dialogue (created in 2001) convened in Beijing on 15 September 2015. The third session of the High-Level Economic and Financial Dialogue (created in 2013) convened on 18 September 2015 in Beijing on the occasion of the visit to China of the French Minister of Finance and Public Accounts. The High-level People-to-People Dialogue endorsed during President Xi Jinping’s State visit was launched on 18 September 2014 on the occasion of the visit to France by Ms Liu Yandong, China’s Vice Premier with responsibility for education, health, sport and culture. The Dialogue’s second session took place in Beijing in May 2015.

The intensity of the political dialogue between the two countries is reflected in the coordination on key international and global issues, such as climate change, global economic, financial and monetary governance, and regional crises. Such coordination enables the two countries to make use of their points of convergence in the major international forums and to deepen discussions of points on which they diverge.

Website of the French Embassy in China

Economic relations

The economic partnership between France and China helps to develop cross-investments and deepen structuring industrial cooperation, particularly in the aviation and civil nuclear energy sectors, in which real partnerships have been developed. This cooperation was conducted based on the principles of reciprocity and mutual benefit. As regards aviation, the renewal in 2014 of the agreement on the Airbus assembly line in Tianjin and the signing in 2015 of the agreement on the opening of an A330 completion and delivery centre have been important developments. The French-Chinese relationship is developing also in other promising areas like the environment and sustainable development, agrifood, health and financial services.
Economic and commercial exchanges are still increasing, but remain marked by strong imbalance. In 2015, the trade deficit reached €25.2 billion. China accounts for our largest bilateral trade deficit, ahead of Germany. Our market share in China (Chinese figures) was 1.4% in 2014 as against around 5.3% for Germany, 1.2% for the United Kingdom and 1% for Italy. China is our second largest supplier (ahead of the United States and the United Kingdom) and has an 8% market share in France. Our imports from China consist primarily of computer, electronic and optical goods (31%) and textile and leather goods (23%).

This situation should not cause us to lose sight of the many successes scored by French businesses in China and of development prospects in new economic cooperation sectors including the environment and sustainable development and the financial and agrifood sectors. Our economic and commercial presence in China is supported by around 1600 French businesses. Those good performances help rebalance bilateral economic and trade relations and could be boosted by a greater opening up of China, particularly as regards market access (including public procurement) and the protection of intellectual property, for which issues we expect greater reciprocity.

The "major contracts" continue to hold a significant place in our bilateral trade relations, as shown by the successes of Airbus, Airbus Helicopters, and AREVA and EDF in the civil nuclear energy sector. French-Chinese cooperation in the nuclear field is the illustration of a long-term industrial partnership successfully forged by France and China. This partnership was further strengthened in 2010 by the Heads of State’s decision to set up a full partnership covering all stages of the nuclear fuel cycle and by the adoption of a joint statement on civil nuclear energy cooperation in 2015. For over 20 years, French industry (AREVA, Alstom, EDF) has played a major part in building civil nuclear power plants in China (Daya Bay and Ling Ao NPPs). The construction of two EPR power plants in Taishan has helped strengthen this partnership over the long term. Our long-standing cooperation in this area rests on the excellence of France’s nuclear power industry, both in terms of performance and the security of nuclear facilities. Nuclear safety is one of the pillars of this cooperation.
Investment by French businesses in China include setting up joint ventures. Many French businesses have embarked on such partnerships, like Alstom, Michelin, Veolia, Citroën and Lafarge. Investment by French businesses in China is therefore an increasingly large component of our economic relationship.
Chinese investments in France are increasing. They account today for a stock of around €3.4 billion and employ almost 20,000 people. France wishes to promote and support the development of Chinese investments in our country provided that they create growth and jobs.

Cultural, scientific and technical cooperation

Scientific and technological cooperation

Scientific and technological cooperation under the intergovernmental agreement of 21 October 1978 currently focuses on several priority areas determined in May 2011 at the 13th Joint French-Chinese Commission on Scientific and Technological Cooperation, including sustainable development, biodiversity and water management, energy and life sciences.

This cooperation is also characterized by a cooperation agreement on preventing and combating emerging infectious diseases signed by the French and Chinese governments in 2004. The Institut Pasteur of Shanghai (IPS), which was launched in collaboration with the Chinese Academy of Sciences, was inaugurated on that occasion. The IPS, together with the Sino-French Laboratory in Computer Science, Automation and Applied Mathematics (LIAMA) in Beijing which was set up by a partnership between the Chinese Academy of Sciences and INRIA, constitute models of research excellence. Over 3000 researchers from the two countries and from 600 research units are currently cooperating within some 60 French-Chinese public research structures.

Cultural and artistic cooperation

In the field of artistic and cultural exchanges, the organization of major multidisciplinary, high-profile annual cultural events helps to deepen mutual understanding and provide a renewed image of France based not only on culture and the arts, but also on modernity and technology. The “Croisements” artistic festival has become the largest foreign festival in China. The 2015 edition, which celebrated the Festival’s 10th anniversary, proposed 108 events in 34 major Chinese cities and hence reached 2.3 million viewers.

The French President’s State visit to China in November 2015 provided the opportunity to announce the opening soon of temporary exhibition spaces in Shanghai by the Pompidou Centre.

University and language cooperation

In the academic field, an extensive programme of French government grants such as the "France Excellence programme", the establishment in partnership of higher education institutions of excellence, for example with the Ecole Centrale of Beijing graduate school and the Sino-European Institute of Aviation Engineering (SIAE) in Tianjin, and the signing of new academic partnerships, should help boost higher education exchanges between the two countries in the coming years. In the space of ten years, the number of Chinese students in France has increased tenfold, with 35,000 students currently enrolled in French higher education establishments. Chinese students are thus the second largest foreign student group in France. The “Club France” network brings together Chinese alumni in France.

Language cooperation is seeing a rise in the number of students of French and Chinese, which reflects the desire shared by our two countries to learn the language and culture of the other. In 2015, some 100,000 secondary school students were studying Mandarin Chinese. Chinese is the fifth most widely taught language in France. Likewise, the number of students of French in China has increased sharply, especially at universities.

Environmental and sustainable development cooperation

French cooperation in China is based on three priorities: the fight against climate change, sustainable urban development and water-related issues.
The French Development Agency (AFD) has been operating in China since 2004 in the framework of a partnership with China’s Ministry of Finance and National Development and Reform Commission (NDRC). The AFD’s action is intended to accompany China’s transition to a low-carbon and environment-friendly economy, and to promote the expertise and know-how of French actors in the framework of partnerships. Since 2004, 24 projects have been implemented for a gross amount of cumulative commitments of nearly €1.2 billion (sovereign loans on market terms since 2011). New projects are currently being implemented in the Guangxi, Heilongjiang and Fujian provinces.

Decentralized cooperation

Since the first Meeting on French-Chinese Decentralized Cooperation in Wuhan in 2005, France and China have opted to deepen the ties forged between their local governments, notably as regards the introduction of clean and sustainable urban policies suited to new lifestyles. The fifth Meeting will take place in October 2016.
Currently, 70 French local governments are operating in China, acting as umbrellas for 150 projects implemented with 90 partner Chinese local governments in key territorial development sectors, including universities, research and the economy. 16 French local governments have opened a representation in China. Decentralized cooperation with China is gradually developing and boosting the economic development of our local governments, as well as cultural and university cooperation between France and China. The fourth Meeting on French-Chinese Decentralized Cooperation was held in Strasbourg in November 2014 and more than 50 Chinese local governments and some 130 Chinese businesses were represented at the Meeting.

Updated: 10/03/2016



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