Economic Watch: China an "investment landmark" for French businesses

PARIS, April 7 (Xinhua) -- As French President Emmanuel Macron is paying his state visit to China, French businesses are eyeing more opportunities from broader cooperation between France and China.

"We have already seen potential opportunities in the market, which makes us even more bullish about China"s economic outlook and prospect," Fabrice Megarbane, president of L"Oreal North Asia Zone and CEO of L"Oreal China, told Xinhua in a recent interview.

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From the first week of February, consumer traffic and purchases have shown positive signs and L"Oreal expects a progressive rebound from the second quarter and consumer enthusiasm to bounce back in all categories, he said.

"We are entering a new era of innovation-driven and high-quality development, which is very in line with China"s economic development roadmap," Megarbane said.

Calling China "the new investment landmark" for L"Oreal, Megarbane said that they have been "investing in China in the past 25 years, and will invest in China continuously in the future."

"In the mid-and-long term, China is not only a growth engine for L"Oreal Group but has a strategic position in terms of innovation (digital plus beauty tech), sustainability and talent," he said.

Francois-Henri Pinault, chairperson and CEO of French multinational Kering Group, told French daily Le Figaro that the dynamism of the Chinese market is picking up.

Beijing"s political will to support domestic consumption is "impressive," with an "undisguised ambition to bring China to a much higher level of growth than in 2022," Pinault said.

Bernard Farges, president of France"s National Interprofessional Wine Commission, believed that China"s economic outlook fares well, particular with the optimization of China"s COVID response.

France was the first supplier of wines in China for the second consecutive year in 2022, showed the latest data from the French Directorate General of the Treasury. For some vineyards, China is the biggest market, according to Farges.

"Today, we perceive favorable signals for economic recovery with an increase in Chinese orders," Farges told Xinhua. "The export potential to this very large country, China, is extremely important."

Expecting closer technical and economic collaboration between France and China, he underscored the importance of mutual recognition of geographical indications of wines between the European Union and China.

This is an excellent piece of news for the wine and spirits sector, since deeper wine cooperation also represents "a common cultural characteristic" between China and France, the refined table art, he said.

In January, French automotive supplier Plastic Omnium announced the creation with China"s Shenergy Group Company Limited (Shenergy) of a joint venture in Shanghai to produce and sell high-pressure hydrogen storage systems for the commercial vehicle market in China.

"Regarding hydrogen, we started very early in China," Plastic Omnium CEO Laurent Favre told Xinhua. "China is a country where you have to be present, a country of great production and great innovation. We have always looked for partners to whom we can bring something and who can help us to get to know the country," he said.

Beijing has been working to have CO2 emissions peak before 2030 and achieve carbon neutrality before 2060. For Favre, China constitutes "a key market for our future development."

Lyazid Benhami, vice president of the Paris Association of French-Chinese Friendship, told Xinhua that such opportunities for sustainable development and energy transition should be favored, particularly amid worldwide economic recession and uncertainty.

At China"s invitation, France will be a guest of honor country at the 2024 China International Fair for Trade in Services (CIFTIS) and the seventh China International Import Expo (CIIE).

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