Opportunities beckoning

Editor's note: The French Chamber of Commerce and Industry in China (CCIFC) plays a key role in helping French companies tap into business opportunities in China. Its president Annick de Kermadec shares with China Daily her opinions on related issues, reports Liu Baijia.

Q: What are the new areas in which French companies can help China in solving environmental and energy issues? Is that going to be a major market opportunity for them?

A: A number of French companies are already very active and contributing to the conservation of environment in China and to its sustainable development.

For instance, the two largest foreign investors in the water utilities industry in China, Veolia and Suez, are both French, with a unique global experience of more than 150 years, and are world leaders in environmental services.

Traditionally, the specificity of French engineering resides in a vertical integration of all the multiple components making up environmental projects, that is to say, conception, financing, construction, and operation/maintenance.

However, research and development (R&D) is critical in this process and, as a consequence, French enterprises are world leaders in this field with acknowledged, highly advanced and performing technologies.

China is still in the process of implementing its WTO commitments. Though the market has opened significantly in the past few years, there are still a number of restrictions that limit access to the growing energy market.

The opening up of this sector with fair rules for all would be conducive to fair competition. It would be a win-win situation for both China and France. The French industry's know-how, in environment and energy issues in particular among others, could be beneficial to China.

Q: After the Strategic Economic Dialogue with the United States, China may open more areas in finance this year. Do you think that represents a real opportunity for French financial firms?

A: The new series of regulations promulgated in December 2006 in accordance with China's WTO commitments, further to its accession in 2002, have marked a step forward in the opening up of financial services and have offered a real opportunity to French and foreign banks alike in China.

After the strategic Economic Sino-American dialogue held on May 22 and 23, new banking sector reforms are set to be introduced to further open more areas in finance this year, with the aim of widening access to the banking market for foreign competition.

Beyond doubt, all these new measures will enable French banks to develop more products and services for Chinese clients (corporate and private) and thus further strengthen their presence in this country.

Q: How would you evaluate the economic relations between the two countries so far this year? Are there any significant changes or progress?

A: Globally speaking, overall cooperation between France and China is developing steadily and being consistently reinforced.

Statistics show that annual bilateral trade has risen from 9 billion euros ($12.2 billion) to 32 billion euros (($43.47 billion)) in the past decade.

In 2006, trade volume rose by 10 percent, and the trade gap between the two nations has also been narrowing.

Imports from France have been growing faster than exports from the Chinese side. In China, there is still a high growth potential for French enterprises.

In view of China's rapid economic growth, French enterprises specialized in highly advanced technology, environmental industries and services, telecom, financial services, and agro-food industry, should be in a better position to enter the Chinese market successfully.

Q: In the past years, former French President Chirac has paid a lot of attention to cooperation between the small and medium-sized enterprises (SMEs) of both countries. Will there be any changes in this area? What has CCIFC done this year to promote the development of French SMEs in China?

A: The French government strongly encouraged the investment of French SMEs in China, with specific financial means called China Cap Export. Another tool set up was a tax rebate for any SME forming an association or a group of companies aiming at exporting goods.

A further sign of France's strong commitment is the large number of official visits undertaken to China, with Christine Lagarde, former Secretary of Foreign Trade and recently promoted to Minister of Economy, Finance and Employment, leading the way -visiting China close to 20 times in recent years.

During her time at the Foreign Trade Department, China was chosen as one of the top five targeted countries with whom bilateral trade was to be reinforced.

Therefore, we at the CCIFC are quite optimistic that any changes in our government's policies related to the support offered to our SMEs to further develop exchanges with China, can only be positive ones for the mutual benefit of our economies.

At present, 75 percent of the member companies of the chamber employ less than 250 staff.

The CCIFC will carry on helping develop the presence of French SMEs in China, which are today entering the Chinese market on a much larger scale, clearly reflected in their increasing numbers being welcomed by the chamber year after year.

Q: What progress has CCIFC made in the first half of this year in providing services to French companies in China or helping such companies come to China? What plans does CCIFC have for the second half?

A: In the first half of the year, an ambitious action plan as well as several schemes was put into force in order to increase French presence significantly.

Recently, a new organization called the Entrepreneur Committee (Comit Entreprendre) was also established, which aims at sharing CCIFC members' knowledge of the Chinese business environment with new French entrepreneurs.

In the second half of the year, important events will be held in both China and France.

For instance, the presentation of the SME China Prize will take place in Beijing on November 18, in a bid to encourage the establishment of French SMEs or individual entrepreneurships with successful business activities in this country.

Close on its heels, CCIFC in France will give out the maiden prize for the best French investment project in December.

In all these ways, the French Chamber wishes to prove to French SMEs that China offers a wide spectrum of business and investment opportunities, but only for those who would seize them.

(China Daily 07/13/2007 page19)