French agri-food exports to China to increase

With the Chinese President, Xi Jinping's State visit to France, the government has rolled out the red carpet for Chinese companies and investors in the hope of reanimating the sometimes rather dusty economical relationship.

In 2013 French exports dropped 2.6% in China, a first since 2009 - explained by slower Chinese growth. On the other hand France still has a disastrous trade balance (-€25.8 billion), so there is an emergency.

This is the occasion to make a final point on negotiations that have waited several months. These obviously include officialising Dongfeng in the PSA capital, but also developing new contracts in sectors that France is renowned for (aeronautics, nuclear, health, urban development).

At the moment China still only represents a small fraction of France's global activity. The most symbolic case is that of CMA CGM who has one third of their turnover with China (this reflects the weight of China's external trade). CMA CGM has succeeded in being the leader on the immense maritime connection market between China and the rest of the world (one third of the global market).

It is difficult for France to compare to Germany. If Paris has a 1.2% market share in China, Berlin's is 4 times larger. In 2012 their exchanges totalled €159.7 billion compared to €56.3 billion for France. As for target -the German Minister of Finance has fixed exchanges for 2015 at €280 billion.

However France is well equipped in a specialised sector that seems to please the Chinese: The tricolour's French agri-food. French agri-food has seen exports increase 3.3% in 2013, leaving 2014 to undoubtably be a record year.