Chinese New Year’s festivities started on February 3nd celebrating the year of the Rabbit. It is therefore a good timing to look at France’s and Europe relationships with China, in the light of the upcoming challenges and monetary turbulences between the Yen, the Dollar and the Euro.

French people condemn a little too easily China for making cheap goods invading hypermarkets. They tend to forget that France is a country heavily driven by the world economy and individual consumption, like it or not. Thus, they themselves actively participate in widening of the trade gap between Europe and China.

France must act. Firstly, by engaging is own Diaspora settled abroad. There are indeed officially 1.5 million French people living outside France, and this potential is still untapped. Why do that? Think of China. Actually, its influence was greatly fostered by the role of Chinese people settled abroad and heavily contributing to the economic development of China. This is little known to the public.

Secondly, France is still one of the world’s biggest soft powers with USD 1.4 billion in annual budget, more than 460 teaching school in 130 countries according to CNN. But with such a golden opportunity and an obvious leadership, France is doing almost nothing to strengthen its key positions. Europe could also greatly benefit from this, since France is part of the European Union. France should start developing and professionalizing its cultural network, by providing for instance an innovative world-class primary education system, or teaming up with European companies to organize technology and science fairs.

Narrowing the trade gap

In a recent interview in L’Express newsweekly, Pierre Lellouche, Minister of State responsible for trade, stated that there is a need to change the currents “rules of the game”, meaning that Chinese investments in Europe needed more reciprocity. This is a European concern as well. But instead of being offensive, Lellouche is actually too much defensive. He should encourage companies to develop products for the rest of the world, promote the French and European brands, and making SMEs more efficient and better organized to reach foreign markets.

That’s a pity that Europeans, and among them many French people, see China as a constant threat. Obviously there is a need for a well-balanced relationship with this major Asian business and cultural partner. But more policy will just postpone the moment when we will suddenly realize that we should have made broader industrial and tactical decisions earlier.

The world Trade Organization (WTO) rulings take long time to be negotiated and adopted; therefore there is a need for a strong and focused business development plan for France and Europe, commensurate with a clear will to identify their competitors’ strengths and weaknesses.

William Spac

Membre des Cabris de l’Europe

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