From ‘French Farms to Chinese Tables’: France’s Economy Minister Touts Trade Potential

[para. 1] In April 2023, China and France launched a supply chain initiative titled "from French farms to Chinese tables," representing a significant project in Sino-French relations. This initiative positioned France as China's largest agricultural product import market and its second-largest trading partner in the agriculture sector within the European Union. [para. 2] However, the partnership aims to extend beyond this, with Éric Lombard, France's economy and finance minister, emphasizing the need to address specific issues such as market access for Cognac and Armagnac.

[para. 3] In a March interview with Caixin, Lombard highlighted prospects for expanding trade, advocating for increased cooperation in artificial intelligence (AI) and climate change action, and encouraging Chinese investments in France's green industries. [para. 4] Despite the positive outlook, challenges remain, notably the substantial trade imbalance between the two countries and the need for improved market access for French enterprises in China.

[para. 5] By 2023, over 2,000 French companies were operating in China, which had become France's second-largest trading partner for goods. French products such as luxury items, cosmetics, agricultural produce, and pharmaceuticals are popular in China. [para. 6][para. 7] Lombard acknowledged progress in facilitating trade, citing the French farm-to-table mechanism as a successful example, but stressed the importance of ensuring a favorable business environment for French firms to work towards a balanced trade relationship.

[para. 8] France's trade deficit with China hit an unprecedented 47 billion euros in 2024, while Sino-French trade reached $58.3 billion in the first nine months of that year, a 1.2% decrease from the previous year. [para. 10] In response, France seeks to attract more Chinese investment, having launched 44 new Chinese investment projects across various sectors in 2023. [para. 11] Green energy is a specific focus, aligning with France's green reindustrialization strategy, launched to foster green industries and decarbonize high-emission sectors. This includes a partnership between China's XTC New Energy Materials and French nuclear company Orano to produce battery components for electric vehicles.

[para. 12] France ranks as China’s largest trading partner in Asia and the seventh globally, whereas China stands as France's third-largest trading partner in the EU. [para. 13] Combating climate change remains a key area in their bilateral cooperation. Both nations reaffirmed their climate commitments during state visits and ministerial meetings following the 10th anniversary of the Paris Agreement, which seeks to limit global temperature rise. [para. 14] Despite hurdles in climate financing, France has shown leadership in increasing its financial support for developing countries, averaging 7 billion euros annually from 2021 to 2023.

[para. 16][para. 17] Responding to growing interest in AI, France hosted the AI Action Summit in February, focusing on the potentials of AI. The event saw participation from over 60 nations, including China, resulting in a declaration for an inclusive AI governance model. Lombard praised China's involvement and noted significant opportunities for collaboration in AI development with a focus on sustainable and responsible practices.

[para. 19] Overall, France expresses a warm welcome for collaborations with China in various aspects, from trade to technological advancements, signifying an optimistic outlook for the future of Sino-French relations in a changing global landscape.