Forum on Economic Cooperation, Trade and Investment Between France and China

The Forum on Economic Cooperation, Trade and Investment between France and China sponsored by the Federation of Small and Medium-sized Enterprises of France (La Confedération Genérale des Petites et Moyennes Enterprises, CGPME), the Euro-Chinese Friendship Association (Association Amitié Euro-Chinoise, AAEC) and the China Council for the Promotion of International Trade (CCPIT), assisted by the CPAFFC and supported by the Chinese Embassy in France, the Direction of Foreign Economic and Trade Relations (DFETR), and the French National Consultant Commission for Foreign Business (FNCCFB), was held in Paris on October 10, 2003. To celebrate the launching of the China-France Culture Year and greet the 40th anniversary of the establishment of diplomatic relations between China and France, the forum aimed at further promoting France-China economic cooperation and trade, particularly mutual understanding, exchanges and cooperation between small and medium-sized enterprises (SMEs) of the two countries. A Chinese local delegation headed by CPAFFC President Chen Haosu attended the forum.

Chen Haosu, CPAFFC president, Liu Wenjie, CCPIT executive vice president, Zhao Jinjun, Chinese ambassador to France, Jean Francois Roubaud, president of the CGPME, Alain-Jean Tusseau, AAEC president, Etienne Bernard, president of the International Commission of the CGPME, attended and spoke at the forum. Members of the Chinese local delegation from Henan, Guangdong, Shaanxi, Shanxi, Shangdong, Sichuan, Guizhou, Hubei, Heilongjiang and Anhui attended the forum, briefing about the economic situation of their respective provinces and cities, learning about France's economic structure and characteristics of French SMEs, exchanging views and exploring possibilities of cooperation with the French economic circles particularly the SMEs. About 200 French and Chinese representatives attended the forum and the panel discussions. The CGPME and the CCPIT signed an agreement on cooperation.

In his speech Chen Haosu extended his warm congratulations on the smooth convening of the forum. He said, there is a striking development of multi-polarization. China and France hold common stand on this fundamental issue. Now an all-round bilateral cooperation is at a good stage, which is illustrated by the launching of the China Culture Year, the France Culture Year and this forum. China and France will greet the 40th anniversary of the establishment of diplomatic relations. The friendly cooperation between the two countries is now creating a completely new situation. In the new century we will continue our cooperation and push it to a new height. Chen said, the CPAFFC will try its best to make more contributions to the development of China-France economic and cultural cooperation.

In his speech CCPIT Vice President Liu Wenjie reviewed the tremendous achievements in the Chinese national economy over the past more than 20 years since China embarked on reform and opening up. He said, China is now going towards an all-directional openness within the system of law to the outside world at multi-levels and in wide ranges. With China's entry into the WTO, the Chinese Government has made adjustments of its relevant policies, improved its transparency and further opened its market. The 2008 Beijing Olympic Games and the World Expo 2010 Shanghai will provide huge business opportunities for SMEs of all countries in the world including France. Liu believed that Chinese and French SMEs would take the opportunity of the forum to enhance mutual understanding and expand consensus so as to lay a solid foundation for further cooperation.

Ambassador Zhao Jinjun expressed his congratulations on the successful convening of the forum, and his welcome and encouragement to the Chinese local delegation for their participation in the forum. Zhao said, such a large-scale forum for promoting cooperation between Chinese and French SMEs that has rarely been held in years has an important significance because SMEs account for a considerable proportion in the economy and export in the two countries. Sixty percent of China's export comes from SMEs. Restricted by various factors, Chinese and French SMEs have not had much cooperation. It is necessary for them to further strengthen cooperation, which is in keeping with the common interests and aspirations of both countries.

In his speech CGPME President Jean Francois Roubaud said, China is now in the transition from planned economy to market economy, from rural economy to the economy of industrialization and urbanization, and from closed economy to open economy. These transitions have brought about strong momentum and tremendous changes to the development of China's economy. French SMEs with advanced technology and huge potentials have increasing interest in cooperating with their Chinese counterparts. If the SMEs of the two countries cooperate successfully, it will produce immeasurable impacts. He also pointed out, under the situation of intensifying competitions, French SMEs will find it not so easy to enter the Chinese market because of differences in culture and lack of knowledge about the Chinese market, especially China's business practice; and therefore, with the support of the French minister of foreign trade and economic relations, the CGPME has drawn a plan of action for the year 2004, namely with the support of the relevant departments, the CGPME will: a. choose some appropriate businessmen for training to increase their understanding of the Chinese market; b. help French SMEs enter Chinese market and c. sign an agreement with the CCPIT on cooperation to formalize the bilateral cooperation. The CGPME is striving to realize the above-mentioned goals in three years.

Leading officials of the DFETR, the Information Group of the CGPME, the FNCCFB, and the organization for supporting small and medium-sized enterprises respectively gave speeches, talked about the goals of the French economic development, the development of French SMEs, the problems that should be paid attention to in cooperation, etc. The Chinese representatives briefed about the economic situation of their respective provinces and cities, and had discussions with their French counterparts on some projects.

Chinese and French SMEs account for a considerable proportion in the national economy of their countries. In France SMEs account for 89 percent of the total number of the country's enterprises, 62 percent of the total employment, 60 percent of the total output value of the country's industry and agriculture. Their export and investment respectively take up 45 percent and 58 percent of the country's total. In China, the output value of the SMEs account for 60 percent of the country's total and their profits and tax paid to the state account for 40 percent. They provide 75 percent of the total urban and rural jobs in the country and their export accounts for 60 percent of the country's total. Therefore, if Chinese and French SMEs can overcome unfavourable factors such as shortage of funds, insufficient information, lack of mutual understanding and low capability of risk resistance, and give full play to their advantages such as flexibility, great variety, quick response to the market and advanced technology, they will complement and benefit each other, and exert positive impact on strengthening cooperation between China and France and even on the cooperation between China and the EU.