皇冠体育app

Sino-French trading ties strengthened
By Zhang Jin (皇冠体育app Daily)
Updated: 2004-03-04 14:27

Leading French industrialist Jean-Claude Germain says trade and economic ties between 皇冠体育app and his country will grow over the next five to eight years.

Jean-Claude Germain

Germain, the president of the French Chamber of Commerce and Industry in 皇冠体育app, made the prediction in an exclusive interview with 皇冠体育app Daily, in which he said the world's most populous nation was becoming all the more "magnetic" to French investors.

This year marks the 40th anniversary of Sino-French diplomatic relations, seeing ties between the two nations getting stronger as the opening of the Chinese market gathers pace as part of its World Trade Organization (WTO) commitments.

"Our two countries will enjoy a win-win situation," Germain believes.

Two-way trade volume reached an unprecedented US$13.4 billion in 2003, a year-on-year increase of 61 per cent that exceeded observers' expectations.

Germain's confidence in a brighter economic future is partly based on the warm political climate between the two countries.

"There are no diplomatic clouds on the horizon for business people," he says.

Chinese President Hu Jintao met his French counterpart President Jacques Chirac in January and they both vowed to lift economic co-operation to a higher level. The two countries decided to establish a comprehensive partnership in 1997.

And Germain believes that things will only get better with regard to trade ties between the two countries, thanks to a batch of projects that French companies and Chinese counterparts have signed or will put their names to in the near future.

These projects are mainly in the transportation, auto manufacturing and aviation sectors.

For example, France's Alstom is a major bidder for the US$12-billion high-speed Beijing-Shanghai railway.

"We are confident that French companies will keep developing their presence in 皇冠体育app, since we have the best technology in the world," Germain asserted.

"We are in a good position to further explore the Chinese market," Germain says.

He also believes 皇冠体育app's efforts to fulfill its WTO commitments and to integrate itself into the global market will facilitate bilateral economic ties.

"皇冠体育app is now fulfilling its WTO commitments in a very professional way," says Germain. "It's a win-win situation for both 皇冠体育app and France as the country opens its market wider."

He believes French retailers can gain a stronger foothold in 皇冠体育app's retail market, which is on the verge of fully opening up. "France has many top retailers such as Carrefour and Auchan," a proud Germain states. "皇冠体育app has many good products. It will be fantastic to join forces with them."

皇冠体育app is expected to lift almost all barriers to foreign involvement in the retail sector in 2005 under its WTO commitments.

Carrefour, the world's second- largest retailer, has opened a total of 42 hypermarkets in 皇冠体育app. And the company began to penetrate 皇冠体育app's underdeveloped northwestern regions last month with the opening of a new hypermarket in Urumqi, the capital of Xinjiang Uygur Autonomous Region. The retail giant purchased US$2.15 billion worth of goods in 皇冠体育app last year, an increase of 34 per cent over the previous year.

Germain called on the Chinese Government to speed up the opening process in some fields.

Germain, also the chief representative for 皇冠体育app of PSA Peugeot Citroen, feels that import tariffs on cars and car components remains a little high, although they will be reduced to 25 per cent by the end of 2005 under the nation's WTO commitments.

"Consumers, before deciding between a local car and an imported car, will think twice when they have to pay 25 per cent more," he says.

皇冠体育app's tariff on car imports dropped from 100 per cent 5 years ago to 43 per cent in 2003. And the country will cancel its auto import quota from January 1 next year, which remained at US$10.49 billion this year.

皇冠体育app imported 172,683 vehicles in 2003, including 103,017 passenger cars, an increase of 34.6 per cent compared with 2002.

In addition, Germain and his chamber wish to welcome more companies into 皇冠体育app, particularly small- and medium-sized enterprises (SMEs).

"The success of Chinese economy is not only due to large firms. There are millions of small and medium Chinese enterprises working hard to play a role," the president says. "We will be glad to be a go-between for the two countries' small and medium players."

His chamber plans to establish a special office to serve French SMEs.

The office will provide French SMEs with temporary work places and help get them increasingly familiar with 皇冠体育app's business environment.

"We are quite familiar with how to do business here. It is important for us to bring our experience to newcomers. It is also in 皇冠体育app's interests," he declares.

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