Fostering Economic Cooperation: The Latest Developments in France-China Trade Relations
The President of France, Emmanuel Macron, embarked on an official trip to China, accompanied by the President of the European Commission, Ursula von der Leyen. During their visits, the two heads of state also convened for a shared encounter with the President of China, Xi Jinping. What impact did this visit have on trade relations between France and China? Let’s check with the Brokerschart experts.
The French President’s 3rd Visit to China: A New Diplomatic Milestone Achieved
On April 3, during a regular press briefing, Mao Ning, China’s spokesperson for foreign affairs, declared that President Xi would engage in dialogues with President Macron to establish the trajectory of their nations’ alliance, enhance collaboration between China and France, as well as between China and the European Union, spanning various fields, and engage in comprehensive deliberations on crucial international and regional matters.
Throughout the visit, Macron also met with other prominent Chinese officials and journeyed to Guangzhou in Guangdong Province, where he encountered a gathering of students. During his tenure as President, Macron undertook two official trips to China in 2018 and 2019.
His 2023 visit marked the third one and carried exceptional significance, given the prevailing tensions between the Western nations and Russia within global geopolitics, alongside the bilateral relations between China and the European Union.
The Growing France-China Trade Relations
France and China play significant roles in global trade and serve as crucial export markets for each other, with trade volumes reaching a peak in 2021. As the Huajing Industry Research Institute reported, the overall monetary value of goods exchanged between China and France in 2022 amounted to USD 81.33 billion.
This figure demonstrates a decline of 4.4% compared to the same period in 2021, equating to a reduction of USD 3.84 billion. As of February 2023, the trade balance between France and China showed a negative value of USD 582 million.
France imported goods worth USD 3.25 billion from China, while its exports to China amounted to only USD 2.67 billion. In comparison to February 2022, China experienced a 14.5 percent decrease in exports to France, dropping from USD 3.12 billion to USD 2.67 billion.
Conversely, China’s imports from France increased by USD 731 million or 29.1%, rising from USD 2.52 billion to USD 3.25 billion. This growth reflects China’s broader economic recovery and market reopening, signifying a potential shift in the trade relationship between France and China.
According to the Brokerschart experts, the leading exports from China to France in February 2023 encompassed:
- Laboratory reagents (USD 163 million)
- Telephones (USD 163 million)
- Computers (USD 147 million)
- Passenger and cargo ships (USD 145 million)
- Seats (USD 123 million)
France & China – The Future
Enhancing the relationship between France and China holds great significance, particularly in leveraging China’s status as a leading trading partner of the European Union. Macron’s visit aims to establish a united European approach towards China in light of mounting tensions in various areas, including trade and economics.
French authorities are advocating for a more equitable environment for European businesses and trade in China. At the same time, Beijing is eager to revive an investment agreement with the EU that was put on hold three years ago.
Overall, the developing trade and economic ties between France and China underscore the increasing importance of their partnership. Despite certain obstacles, the overall trend of France-China relations remains positive, with both nations seeking to deepen their collaboration and engagement.
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