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.
As far as France is concerned one of the biggest partners in trade is China in Asia. Trade between both the countries has been seeing a significant growth with figures escalating since the past few years. The China Customs, in its statistical data has publicized that trade between the two countries in comparison to each passing year. Globally, the sixth largest country having industrial growth has been France, with China’s role in the France’s economy being major. A number of industries have been set up including environmental protection organizations, nuclear power plants, ground transportation, aviation, chemical industry as well as national defense etc which are considered some of the major industries in France.
However as far as the automobile industry, consumer goods, garments, electronic items etc. fierce competition is experienced from rest of the nations, as well as enterprises available locally. It has been seen that the potential of growth in the economy of China has not been taken full advantage of by France. France’s deficit in trade has been enlarged by the ever increasing exports of China in garments, electronic goods, textiles, electronic equipments as well. Whenever there has been an imbalance of trade between both the countries, tension mounts.
This has been best reflected in the 2005 disputes related to the textile industry, where textile products were blocked at the ports of Europe, due to increase of quota in imports. Efforts are made on maintaining compliance strictly with regards to the large textile industries running at domestic levels. However efforts were made to resolve issues at various levels. As far as China’s role in the France economy is concerned, in the year 2007 a number of projects were invested in by France. In the form of joint venture that is contractual in nature or joint ventures in equity, many of the enterprises in France are now contributing to the money market in China.
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