The Big Question. Should China Support Financial Bailout of European Countries?

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A report by David Pierson and Don Lee in Los Angeles Times published on November 6th 2011 is being greatly discussed in business circles. Many European countries are in the midst of planning to overcome their financial crisis and are hoping that China would to a great extent fund their $1.4 trillion bailout plan. But many Chinese feel that the Europeans are still in a much better condition than the Chinese themselves and as such are wary of the idea. The prospect of China emerging as the new power on the basis of this bailout has not found favor with Chinese public.

The Socialist government in Greece and the opposition party has agreed to form a united government to jointly overcome the crisis. But till now China has not expressed it willingness to fund Europe’s massive bailout plan. A successor to the Greek Prime Minister was to be announced last Monday, but there are still no signs of a positive response from the Chinese leaders. It is quite apparent that they are not yet inclined towards funding the bailout and it is hard for the Chinese public to accept such a move.

Sarkozy appeals for Chinese intervention for a free Libya

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To rebuild Libya, Nicolas Sarkozy, the French President, urged China, who was hesitating to join the nations of the West for conference for discussing the future of North Africa. On his way to the South Pacific for some time, Hu Jintao the Chinese President and he discussed European economic travel, the European currency, the Euro and the economy all over the globe. Sarkozy urged China to help in building free Libya while declaring his confidence in the eurozone once the meeting was over.

For ousting Moammar Gaddafi in the battle with the rebels, he has declared on the war taking place in Libya that China has not provided as much support as United States, France and Britain which are many of the Western countries. As far as Libya is concerned the entire community, at international level should have one common vision. It was felt that in the upcoming Paris international conference the future of Libya would be discussed. Sarkozy also said that the situation has already has already been explained, and invitation would be put forward to the Chinese for joining the Paris conference, for preparing a Libya that was free.

Amongst the community internationally, a unanimous vision would be rebuilt and it was definite that China would be part of this. This meeting was held at the Great Hall of the People in Beijing with Hu. Against the forces of Gaddafi the Arial campaign which was led by NATO who condemned the dictator, was criticized sharply by China.

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French companies in China

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As far as cooperation in technology is concerned, China has one main partner and that is France and it is due to this that the number of French companies in China have increased. Huge investments have been made by China in France, and in the EU it is the fourth largest partner in trade. In the world, France is the tenth and in Europe it is the third as far as investments in China are concerned. Companies from France have been establishing themselves well in China even if these establishments are budding only now, in the recent times.

In future too big plans are being made for developing many more projects in areas of investment. French companies in China totaling to an approximate 850 in number already exist and employees up to the extent of two hundred and fifty thousand make the mark. Besides this there are hundreds of facilities as well spearheaded by France in China. Turnover of French companies in the region have doubled more than the exports made directly. It has been observed that with every passing year the percentage of turnover witnesses at least a twenty five percent increase.

One of the most active areas in China is Wuhan where huge investments have been made by the French trade sector. It is in the major areas like the industry dealing in automobiles, communication and exploitation of energy that investments in China have been made by France. Shanghai, one of the most popular cities in China, is the place where France has made huge investments too. Canton and Peking are other cities where the presence of French companies in China is largely felt. Of China’s trade with France that is bilateral, only one percent is comprised in the industry of nuclear energy. However even in this a lot of growth is being spearheaded by France.

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Chinese Electronic Company Changhong in France

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It was only after overcoming numerous difficulties that the relations between the two countries China and France have developed over the years and continue to see gradual improvement as well. Between the Republic of France and the People’s Republic of China, diplomatic relation was celebrated as part of their 45th anniversary in trade. There were a number of issues related to Tibet markets which are now resolved and efforts are made to get the diplomatic relations improvised further.

In China, the TV manufacturer and Chinese Electronic Company Changhong is now operative in France and makes Changhong projectors, the second largest in China, accessible to the French markets. Called The Giant Chinese Electronic Company Changhong, the company is located in Mianyang.

In the year 2004, this reputed television and electronic company Changhong was responsible for major TV exports to France and other countries in the world to the extent of ninety percent trade in the segment. Technology used for making television sets in 3D as well as the latest LED Backlight Full.

The technologies are to be shared with France which indicates that all efforts are being put in to get the relations between the two countries developed. Latest models have been successfully presented in the market in May 2011 in France’s Europe Electric display.

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China’s Role in the France economy

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It was in the year 1964 that a relationship that was diplomatic in nature was established between China and France. After around thirty decades the economic relationship has fast progressed between both the countries for the betterment in future. Many of the French companies are established in China. In the 1980s China’s role in the France economy was not at all treated (by France) as a preferable choice as far as the economic strategy at international levels was concerned.

Beijing, the capital of China, was responsible for attracting reactions that were strong when Taiwan and France entered into two of the biggest deals in arms and ammunition in the year 1991. Normalization of relations between France and China took place when the government of France discontinued sale of ammunition and arms to Taiwan as per a joint communication between the two governments in the year 1994.

In the present times it has been seen that the relation between both the countries France as well as China have been progressing significantly. As far as investments in different sectors and trade is concerned, tremendous growth is being seen and in fact a proper balance is being maintained as well. In the whole of Europe, France is China’s biggest partner in trade.

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France Embassy in China

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In the Security Council, France is one of those important members which hold a seat permanently. Besides this in many of is specialized agencies, France continues to be a member. There are a number of countries in Asia like Japan, China and India where economical as well as political relations are being maintained by France extensively. The process of ASEM that is Asia Europe Meeting was also launched in which France has played a very important role.

The ASEM could later on emerge as APEC’s competitor eventually. The United Nations is facing competition by France, as France continues to have its presence commercially felt in China. It is mainly in areas like aerospace and markets that are luxurious and high tech that France is emphasizing on its commercial presence in the Republic of China.

Photo Resource – Ebeijing.gov.cn

As far as the Paris Peace Accords are concerned, France has been considered as the main architect in Asia’s South East regions. All of this has greatly helped in ending the Cambodian conflict. North Korea is one country with whom relationships of the diplomatic types are not held formally by France.

Near Paris a delegation has been maintained by North Korea however. This is just a delegation and not a consulate or an embassy. With the Republic of China (Taiwan) diplomatic relations are recognized by France formally just like many other countries. For this the reason is that with both the People’s Republic of China as well as the RoC have the relationships recognized.

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Chinese Embassy in France

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Many of the countries have their embassies in other countries, all of which have specific purposes. France too has a Chinese Embassy which Mr.Kong Quan heads as an Ambassador. Peace is the unswerving pursuit of China’s foreign policy besides propelling development commonly between the two countries, maintaining peace between different countries of the world, having construction modernized, preserving integrity between territories, sovereignty as well as independence.

The Embassy office is open from Monday to Friday from 9.00 to 12.00 in the mornings and from 14.30 to 18.00 in the afternoons. Email id of the Embassy is chinaemb_fr@mfa.gov.cnte, located at 11, Avenue George V – 75008 Paris. Since the past six decades a journey that has truly undergone trial and testing has unfolded within the Embassy of China in France. Mutual understanding between people of both the countries has been increased along with the upholding of either country’s independence. As far as work on the diplomatic front is concerned, the achievements have been remarkable.

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What France does Export to China?

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One of the world’s wealthiest and largest economies, France is the second largest economy in all of Europe. Economy of France endured just four quarters of contraction when it entered into the recession of 2008-2009; and then left it faster than many other economies. Since the second quarter of the year 2009, economy of France has been continuously growing along with its exports. What France does export to China?

After USA, Japan and China, France has the fourth ranking in the Fortune Global 500 but it is very well ahead of UK and Germany. Its economy is at par with 39 of the 500 biggest companies on the globe in 2010. France exports a number of things to China that range from automobile products, machinery and transportation equipment, chemicals, aircraft, construction material and civil engineering products, plastics, chemicals, pharmaceutical products, ship building basics (naval and specialist ships), iron and steel, aerospace and defense, beverages, telecommunications (including communication satellites) and electronics. France also exports different wine ranges, dairy products, vegetables, pork, fruits, poultry and apples to China.

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Car Industry

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Since many years, it has been seen that the car industry has been growing and is continuing to grow rapidly. The world has never been the same since the 1769 automobile hit the road, thanks to Nicolas J. Cugnot, a French Engineer. To understand what exactly the car industry is, it is very important to get a gist of activities within. To run the first ever car that was made, steam engine and a three wheeled, self powered, military tractor was used. Due to this the automobile could run just up to fifteen minutes only.

Whatever be the case, it was this invention that was groundbreaking and subsequently led to the car industry that is booming today. During the eighteenth century, another breakthrough sparked off with the invention of the electric carriage. In the year 1842, this very same private car moved with electric batteries that were non rechargeable. Transportation became more convenient and comfortable with the introduction of this private car. The only problem however was the short range which the cars that were battery driven covered; hence they did not make too good a choice then.

Private cars were produced in bulk in the year 1914 by Henry Ford. Pioneered by Ford, several methods that were introduced paved the way to mass production of private cars, after which the assembly lines within the car factory were established. These private car models were patronized and made popular by the rich, which was the good news during that time. The car industry was dominated mainly by the United States at that point of time. A lot of change came in the car industry towards the end of the Second World War.

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France and China Economic Partnership

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The African, Caribbean and Pacific Group of States or ACP countries and the European Commission of the European Union have created a free trade area or the (FTA). The Economic Partnership Agreement is the scheme to follow for bilateral talks and follow-ups between France and China. As a response to continuing criticism that the discriminating and the non reciprocal preferential trade agreements discriminate preferential trade agreements, they have come into alliance with the rules of the WTO.

The EPAs or the Economic Partnership Agreements are the key elements of the talks, which are the latest agreements in the ACP-EU Development Cooperation history. There are a number of key elements like reciprocity; regionalism, special treatment and predicted impact that have been considered while making the economic partnership agreement. Key feature of the talks is their non-discriminatory nature and reciprocity, due to the continuing WTO incompatibility of arrangements previously.

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