From Lipstick to Nuclear Energy: Six Decades of China-France Economic Ties

From Lipstick to Nuclear Energy: Six Decades of China-France Economic Ties

HAIKOU, Hainan Province – One out of every three lipsticks exported from France finds its way into the hands of a Chinese customer. This striking statistic, shared by Fabrice Megarbane, President of L’Oréal North Asia Zone and CEO of L’Oréal China, during a consumer expo last year, underscores the depth of the consumer bond between China and France.

L’Oréal, the leading French cosmetics giant, marked its fourth consecutive participation in the China International Consumer Products Expo in April 2024. Hosted in Haikou, south China’s Hainan Province, the expo attracted a plethora of French businesses eager to tap into the vast potential of the Chinese market.

Expanding Horizons Beyond Consumer Goods

Since establishing diplomatic relations in 1964, China and France have cultivated a robust trade partnership. From exquisite wines and gourmet cheeses to high-tech aircraft and nuclear power collaborations, the two nations have significantly diversified their economic exchanges.

Today, France stands as China’s third-largest trading partner within the European Union and the third-largest source of actual investment. Concurrently, China ranks as France’s largest trading partner in Asia and its seventh-largest globally, according to the China Council for the Promotion of International Trade.

Advancing Together in High-Tech Sectors

The collaboration between China and France extends into advanced industries such as civil nuclear energy and aerospace. In 2023, Airbus launched its second final assembly line project in Tianjin, signaling the French aerospace leader’s commitment to expanding in the Chinese market.

"This is a powerful vote of confidence in the future of aviation in China and underscores our long-standing, trustful partnership," said Airbus CEO Guillaume Faury during the virtual launch ceremony in September 2023.

By the end of 2021, data from China’s Ministry of Commerce showed that 6,687 French companies had established operations in China, with a cumulative investment exceeding $19 billion.

In a nod to the strengthening ties, France has been designated as the Guest Country of Honor for both the 2024 China International Fair for Trade in Services in Beijing and the seventh China International Import Expo in Shanghai.

"We invite French companies to dive deep into the Chinese market and export more high-quality products, technologies, and services to both Chinese and global markets," said Lu Shaye, the Chinese ambassador to France. "By doing so, they can seize development opportunities in China and inject new vitality into global growth."

Exploring New Frontiers

Beyond traditional sectors, China and France are venturing into emerging industries like the digital economy, green energy, and services catering to an aging population.

A spring 2023 survey by the French Chamber of Commerce and Industry in China revealed a growing optimism among French businesses operating in China. Nearly 47 percent of member companies expressed plans to expand their investments in the country over the next three years, marking an increase from the previous survey in September 2022.

"French companies are full of confidence in the Chinese market," affirmed Bertrand Lortholary, French Ambassador to China, speaking to reporters in November 2023.

During discussions with French Finance Minister Bruno Le Maire in Paris in April, Chinese Commerce Minister Wang Wentao highlighted that bilateral trade reached $78.9 billion in 2023. Notably, Chinese imports from France saw a 5.5 percent year-on-year increase.

"The trade balance has improved, and our cooperation in emerging industries is booming," Wang noted.

A Vision for the Future

Chinese President Xi Jinping, in a video address commemorating the 60th anniversary of diplomatic relations in January, emphasized the importance of mutual growth. He called for both nations to "make the pie bigger for mutual benefit," fostering collaboration and sharing development opportunities through openness.

"Facing the next 60 years, China and France will work together to create greater glories," President Xi declared.

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