French President Opens France to Chinese Investments

French President Emmanuel Macron offered to open up the country to Chinese investments on Tuesday. This is in exchange for a greater access to Chinese markets for French businesses, he also warns that the existing trade imbalances would lead to protectionism.

President of France opened the country for Chinese investments.

President Macron is on his second leg of a three-day state visit in China with a delegation of 50 business leaders. He hopes that this will help lessen a 30-billion-euro or $36 billion trade deficit with China.

“We have an access to markets which is unbalanced, unsatisfying,” the French President stated to the members of French and Chinese business community at a start-up incubator in Beijing.

“If we don't deal with this responsibly, the first, natural, reaction will be to close up on both sides.”

President Macron and President Xi Jinping met on Monday evening. The French President stated that the two countries would tumble into a lose-lose situation if constant restrictions on foreign firms in China prompted France and Europe to put a brake on Chinese investment in Europe.

“Let's open up both instead,” told President Macron.

The President is hoping to seal deals, especially in the nuclear, aerospace, and agrifood sectors.

“We're confident we'll achieve more than symbolic stuff,” a French official stated.

The official also added that the Areva, a French nuclear group, is near to signing a commercial agreement to build a nuclear reprocessing plant.

“We've never been that close to signing a commercial deal,” the French official told.

According to the same official, BNP Paribas, a French banking giant, is also expected to set up a combined venture with a Chinese partner in the consumer credit sector.

Fives, a French engineering firm, signed a contract with JD.com, a Chinese online retail giant, which will set up a logistics center in France. This will source French food and luxury products that will be available online in China.

The online retail giant agreed to sell 2 billion euros worth of French products, including Evian water and Remy Martin cognac, on its website over the next two years.

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