France developing business talent in China

Founded in 1992 under the inspired leadership of French companies engaged in business in China, the French Chamber of Commerce and Industry in China (CCIFC) has steadily increased the number of members each year. 2008 is following the trend of the previous years and it now has more than 1,200 members.

The Chamber has both large companies and small-and medium-sized enterprises (SMEs), which play an active role in communication and cooperation with Chinese companies in many fields, according to its president, Annick de Kermadec-Bentzmann.

"Of course the large French companies are all very active in China. But a majority of our members are SMEs. France's economy has a very large basis of SMEs and our young professionals and entrepreneurs are very talented in creating new companies to produce, create and sell new products, concepts and services," the president said.

She noted that China is giving the SMEs this opportunity to bring their talents to China, which benefits both France's and China's economy.

"We really care for our new SMEs members and give them a hand as far as they need. They have little room for maneuver in terms of fixed costs. So we try to alleviate their expenses in advising them," the president said.

China accounts for almost 10 percent of the trade of French exporting companies, which is already very significant.

"Nevertheless, our goal is to increase the number of exporters among French companies in France. The role of the French Chamber is to welcome them here and to give them a maximum of chance to succeed," she said.

"All sectors of industry, trade and services are well-represented in the Chamber. It means that China is already a very sophisticated industrial and economic territory, able to attract the whole range of enterprises, from the primary to the most advanced, from commodities to highly specialized products and services," the president noted.

The French Chamber, together with the Assembly of French Chambers (ACFCI), has organized for the third year an award for SMEs in France and in China, helping promote the best performing SMES or entrepreneur.

"To achieve this goal, we work very closely with the French governmental Agency UBIFRANCE which focuses on how to encourage a company based in France to become an exporter in China. There is a virtuous circle between export, research and development, creativity and economic, financial, market share growth," she said.

The role of the French Chamber is all the more important as it is still quite difficult to access some of the business sectors in China. "Of course, there has been a lot of improvement in the business environment in China during the recent years," she said.

"The legal conditions of the enterprises in China have improved a lot. Let us mention as an example the labor laws and rights. China has made a big move towards regulations that are already applied in many countries, among them France. The French enterprises have developed in China the same way as in France, with high standards in labor laws. The raising of legal standards brings the Chinese companies closer to those already applied within foreign companies," the president noted.

"There are still improvements which are expected by our members. Let us mention the question of quality and traceability standards of products. There are still difficulties concerning counterfeiting, respect of copyright, etc. We may also mention the need of improvement in the management of energetic and environmental resources by Chinese companies: petrol consumption, water and air management. The pressure on enterprises in the environmental and energy saving fields should be the same for local and foreign enterprises," Kermadec-Bentzmann added.

Talking about the worldwide financial crisis, the president said: "In my view, despite the wide-spread financial insecurity, the members of the Chamber will remain, as in the past, highly confident about the future of China."

"In general we may say that French enterprises in China are not all on the front line of this crisis since their financial situations are sound. The establishment of a company in China goes along with a good cash situation, without heavy outstanding banking debts, which minimizes losses here," she added.

She also noted that the crisis might have some positive effects in compelling the enterprises into more rigorous governance, which will help them in the future.

The major role of the Chamber is to help French businesses enter this market and develop successfully. There are also huge opportunities for cooperation between Chinese and French businesses, such as in aeronautics with Airbus or in energy with EDF.

(China Daily 10/24/2008 page40)