Chinese companies invested in France – Sino-French commercial deals

Chinese companies invested in FranceApr. 25 – Chinese companies invested in France are getting boosted in 2019 by adding one more key player – Microport, specializes in “pace makers” and defibrillators health and medical equipment. With an additional 350 million euros investment to its R&D center in Clamart in the Hauts-de-Seine area. Statistics indicates that France ranks No. 5 position in China invests in Europe.

Under the France’s Initial «Choose France ! »

It’s still too early to conclude the overall result of the France’s initial «Choose France! », however, there were some positive signs of new foreign investments for 2019 in France announced. According to a related report, among others, the leading the list of investors is: Microport. Procter & Gamble, Mars and Transpod all publicized additional investment in France. With several million euros investment in its R&D in Clamart in the Hauts-de-Seine area France, the Chinese company Microport lead the list of investors. Other key foreign investments in France announced for 2019 were:

  • The American agri-food group Mars announced investments of 120 million euros in eight of the sites it has in France. Of this amount, €70 million will be allocated to the Haguenau plant in Lorraine.
  • The consumer goods group Procter & Gamble will invest €50 million in a new production line for laundry and cleaning products in Amiens.
  • Another step forward for the Regions, but already announced this fall, Canada’s Transpod will invest €20 million to build a 3 km test line in Haute-Vienne for the Hyperloop high-speed train, the project of Elon Musk, founded Tesla.
  • American network equipment manufacturer Cisco plans to invest €60 million in research and innovation, mainly in the Paris region
  • Microsoft and IBM will also increase their presence in France.

Sino-French Investments

French investments in China: A related study estimates that France has more than 1,200 companies with a presence in China; the overall stock of French investment in China is around €16.7 billion. China is a significant investment and trading partner for France. Furthermore, there is added growth potential given the strong ties uniting the two countries: China is the number three destination for French exports (outside of Europe) and France’s second-largest supplier. France has signed €40 billion of business deals with China in 2019. Among those new transaction, one of major deals: in the form of 300 airplanes, worth €30 billion, to be sold by European firm Airbus to China Aviation Supplies Holding Company, the other deals €10 billion covered energy, transport, and food. “French investors are welcome to share development opportunities in China”.

Chinese investments in France: France is one of key destinations for China foreign direct investment in Europe. Cumulative amounts of Chinese companies invested in France, from a variety of industries with technology, food and beverage, and hotels, according to an associated study estimates that around 150 Chinese subsidiaries are established in France, Chinese investment in France reached $2.4 billion in 2016, and $1 billion in 2017, plus 2018 until now, the overall stock of Chinese investment in France is around €4.2 billion. With recent transactions of Chinese investments in France, there were major deals made between the two countries. According to a related statistics indicates that France ranks No. 5 position in China invests on the continent of Europe. Below is the list of major business cooperation between China and France in recent years:

  • Fosun & Lanvin [ Fosun Becomes Majority Shareholder of French Luxury Brand ]
  • China Eastern & Air France-KLM [ China Eastern to spend $439m for stake in Air France-KLM ]
  • Sanyuan & Fosun [ Fosun, Sanyuan to acquire French margarine maker St Hubert for $733m ]
  • Jilin & Lyon Aeroformation deal [ Chinese Jilin university acquires French aviation school in Lyon ]
  • Four Seasons Resort Bora Bora & Fosun [ Chinese – French Polynesia Bora Bora resort hospitality deal ]
  • Fosun & Clud Med deal [ Fosun Gets Approval to Spin Off Tourism Unit Including Club Med ]
  • CFEC & Ymagis deal [ China Film to take a 15% stake in French digital cinema company Ymagis ]
  • Neovia & Sanpo [ France’s Neovia acquire Chinese pet food maker Sanpo ]
  • Chateau Fauchey & Profitsun Holdings [ Bordeaux wine estate Chateau Fauchey sold to Chinese investor ]

Several Significant Sino-French Deals Announced in 2019

China is an important economic partner with France. The record peak weighty deal between China and France is due to the reported of a mega contract set up in 2018, China confirmed its order of 300 Airbus planes worth $33 billion (€30 billion) the partnership between China Aviation’s Supplies Holding Company and Airbus, an international pioneer in the aerospace sector, Airbus designs, manufactures and delivers industry-leading commercial aircraft, helicopters on a global scale. Other related commercial agreements reached between China and France announced in 2019 include:

  • An agreement worth €1 billion (US$1.12 billion) to set up a wind farm project in China was signed between EDF and China Energy Investment Corporation (CEIC).
  • A memorandum on the creation of a Franco-Chinese cooperation fund estimated to be worth €1 billion was signed by BNP Paribas, Eurazeo, and the China Investment Bank.
  • A memorandum worth up to €6 billion (US$6.74 billion) was signed by BNP Paribas in the framework of co-financing, but this time with Bank of China.
  • A strategic partnership agreement aimed at industrial upgrading worth €6 billion between Schneider Electric and the Power Construction Corporation (PCC).
  • A global framework agreement to build 10 new ships, worth €1.2 billion (US$1.25 billion), signed by CMA-CGM and the China State Ship Building Corporation.

Future Perspective Sino-French Investment

China is an important economic partner for France, and the prospects for growing French exports remain significant. More important, Chinese businesses continue to seek access to global markets, natural resources and foreign knowhow; and, of course, opportunities to drive returns on financial investments. However, China market also presents huge new opportunities for French companies; many French products are highly regarded in the Chinese market, such as cosmetics, luxury consumer goods, wine, and food products. After all, Sino-French relations going forward, As the French businesses interact with China, agile and imaginative firms that apply the right strategies to emerging opportunities will see the greatest success. The industry composition of Chinese investment has also shifted remarkably in recent years, as automotive, healthcare, and consumer goods and services sector became top receivers for Chinese foreign direct investment (FDI). There is a fresh truth: the shifts in the investment landscape for outbound Chinese investment and the forces driving change. For international business service providers, particularly financial institutions or business related service firms, the List of Chinese companies invested in France is available. For further information please contact DCCC – the organization assists foreign companies to connect with reliable Chinese investors, email info@dccchina.org

Bookmark the permalink.

Comments are closed.