China and France, with diplomatic ties going back six decades, are pointing the way for the green transition, showing that in tackling the challenges facing all of humanity, cooperation is crucial.
Facing common threats such as global warming, which is causing extreme weather challenges worldwide, enterprises from both China and France are working together on green solutions and products.
As one move toward achieving carbon neutrality, France is building its northern industrial hub of Dunkirk into a "Battery Valley" to attract the participation of multinational battery enterprises, including those from China. In addition to the participation of battery companies, enterprises such as China State Construction Engineering Corp and BETOM Group, a prominent French engineering design firm, are contributing to the development of the future battery hub.
One hurdle to development of the hub was the fact that differences exist between the two countries in areas such as construction standards, environmental regulations and administrative procedures. This is where cooperation between China Mediterranean Holding SAS, an overseas unit of China State Construction Engineering Corp, and BETOM came in.
"Localization is a major hurdle confronting Chinese players extending their footprint in the 'Battery Valley'. We are keen to bridge this gap," said Lyu Taizhong, director of China Mediterranean Holding's European business department.
As an engineering design institute with nearly 60 years' experience, BETOM "plays a key role in supporting CSCEC's overseas business", Lyu said. A team well-versed in both Chinese and European construction standards has been formed as part of the cooperative efforts, with employees from both China and France.
Christophe Lac, general manager of BETOM, said that "such a 'mixture' brews fruitful results in our major business areas, including building, engineering and consulting. This engineering design institute is providing comprehensive engineering consulting services for numerous Chinese battery investment companies in the 'Battery Valley'."
"Thanks to knowledge about both the needs of Chinese clients and the regulation and operation rules in the French market, the team is clearing away the myriad obstacles for customers from both sides to facilitate project implementation," Lac said.
The cooperation is a reflection of the flourishing economic exchanges between the two countries as well as the commitments of companies from both sides in each other's market.
Pernod Ricard, a French wine and spirits group, said that after achieving 6 percent year-on-year growth in the Chinese market in its 2023 fiscal year, it will focus on premium and diversified products in the years ahead.
"China stands as Pernod Ricard's second-largest market, where we have established a presence for over 30 years," said Jerome Cottin-Bizonne, CEO of Pernod Ricard China. "We will respond promptly to ever-evolving market and consumer demands in the country."
Since China and France established diplomatic relations in 1964, their bilateral trade has increased more than 800-fold. Today, China is France's largest trading partner in Asia, while France is China's third-largest trading partner and the third-largest source of actual investment within the European Union, according to data from China's Ministry of Commerce.
Sino-French trade reached $78.9 billion in 2023, with imports from France increasing 5.5 percent year-on-year, the ministry said.
France had established more than 6,000 companies in China by the end of 2021, with investment exceeding $18 billion, and it has expanded innovative business models in China.
In addition to investing in innovative ecosystems through partnerships with Chinese companies, many French companies, such as Schneider Electric and Sanofi, have established research and development centers in China.
By the end of 2023, China had been the top Asian country in terms of investment and job creation in France for three consecutive years, with nearly $4.9 billion in direct investment. Chinese companies have invested in over 900 French companies, employing more than 50,000 local employees in France, according to the Beijing-based China Chamber of International Commerce.
Despite some European politicians advocating of decoupling from China, French companies have consistently maintained a clear and objective stance, basing their actions on facts and upholding mutually beneficial and pragmatic cooperation with China, said Cai Tongjuan, a researcher at Renmin University of China's Chongyang Institute for Financial Studies.
Cai said that China and France both possess strong capabilities and advantages, and through cooperation, they can achieve mutual benefits and win-win results, promoting the balance and stability of the global economy.
China's ongoing consumption and industrial upgrading boom will continue to attract French investment to China in many areas, such as high-end manufacturing and green development, in the years ahead, she added.