France urged to invest in high-end sectors

By Ding Qingfen and Li Jiabao (China Daily)
Updated: 2012-03-29

A worker applies adhesive tape to a wind turbine blade in Tianjin. China's energy and environmental policies can translate into huge opportunities for French companies, according to an official at the State Council's Development Research Center. [Adam Dean / Bloomberg]

Policies provide incentives in services, energy and high-tech

French companies are being encouraged to invest in China's high-end manufacturing industry, high-technology companies and the modern service sector as the nation pursues a more innovative, energy-efficient economic model, said a high-level official of China's top political advisory body on Wednesday.

France should "try to expand exports of energy-conservation and environmental protection products, as well as aviation and aerospace technology", Bai Lichen, vice-chairman of the National Committee of the Chinese People's Political Consultative Conference, said in a keynote speech at the 18th China-France Economic Forum in Beijing.

Under its 12th Five-Year Plan (2011-15), China aims to be more environmentally friendly by developing the renewable energy and new energy industries.

New guidelines encourage foreign companies to invest in high-end manufacturing, new energy, the service sector and strategic emerging industries.

Despite rapid economic growth, China faces energy-related problems, including "comparatively low energy reserves per capita worldwide, environmental pollution and energy safety, so the nation intends to upgrade its energy technology and industry", said Feng Fei, director of the industry department at the State Council's Development Research Center.

"China's policy on saving energy and the environment translates into huge benefits for French companies," Feng said.

From 2011 to 2015, China's spending on energy conservation and environmental protection will reach an estimated 3 trillion yuan ($475.8 billion).

The nation will also "top the world" in spending on renewable energy development, said Bai.

"These numbers mean profits for the world, including France," said Bai.

Bilateral cooperation has so far been focused on the nuclear, defense and transportation sectors. In the past few years, "it expanded dramatically to other sectors, like environmental protection, energy efficiency, food security, agro-industry and luxury", said Jean-Pascal Tricoire, president of Schneider Electric Co Ltd.

"The spectrum for cooperation is expanding very, very fast. The investment will grow by double digits."

France is China's fourth-largest trading partner in Europe and the second-largest destination in the region for Chinese exports. China is France's largest trade partner in the Asia-Pacific region.

As of 2011, China's cumulative investment in France had reached $1.8 billion, with French investment in China totaling $12 billion.

Bilateral trade recorded double-digit growth last year, reaching a new high of $52 billion.

"As the debt crisis deepens, China and France should enhance cooperation," said Bai. "China encourages the import of more high-tech and high-end equipment from France."

High-level Chinese officials have said the country seeks to expand imports of high-tech goods from around the world, and they urged developed economies to loosen curbs on exports to China, in a bid to narrow its trade surplus and achieve balanced trade.

The United States recently said it is considering measures to expand exports of some high-tech goods to China. In a statement released by the Foreign Ministry, President Hu Jintao called on the US to "take practical steps" on the issue.

Experts said more cooperation with China is important to France, where unemployment has been high since 2008.

"China and France are highly complementary in their economic growth structures, while China has a huge market and lower labor costs and France has capital and technology," said Li Wei, president of the State Council's Development Research Center.

Tricoire said French companies have advantages in technology. "People sometimes underestimate the technological leadership of French companies.

"In the sectors of water treatment and energy efficiency, France holds world-leading positions with advanced technology," he said.

Contact the writers at dingqingfen@chinadaily.com.cn and lijiabao@chinadaily.com.cn