China, the fundamental economic issue for France

China
China
French companies have fallen behind in their implementation in the Middle Kingdom: Germany with exports to 89 billion dollars, against 20 billion only for France.

It is “urgent” for French firms to “put its focus on China “, despite its declining growth rate and even if the” entry ticket increases, “warns a study released Wednesday. “Do not be deceived: China certainly slows to normal, but it will remain permanently at the center of the board,” says the firm OC & C Strategy Consultants, in this survey with the Chamber of Commerce and French industry in China (CCIFC) and ICC Paris Ile-de-France. Today, 46% of European companies believe that the golden age is over for multinationals in China, said in a press conference in Beijing Henri-Pierre Vacher, OC & C.

But he has tempered, China will take nearly 22% of global growth in 2019, the same as all the first 24 called emerging economies ( India , Brazil, Mexico, Indonesia, Russia, Egypt, etc). “For any company to global leadership role, do not anchor in China with determination comes a serious obstacle to its room for maneuver,” warns the study. According to its authors, France “is (very) late” against Germany in the Battle of export and implementation in China. In 1995, Germany exported, for eight billion, against three for France. Eighteen years later, Germany with exports to 89 billion dollars, against 20 billion only for France.

Three times as many German companies

And embassies estimate that 5,500 German companies operating in China, against 2000 French. But ensures the study, the mutation being the Chinese model is “a powerful air call” for specialty hexagonal champions in the consumer, urbanization, services, energy and sustainable development. With economic and trade diplomacy more pragmatic and coordinated the Germans in China are often best placed in price, due to more concentrated production units with formidable scale effects, the study notes.

She cites the example of the fluid milk, which Germany won with 60% of the import, a high average price twice lower than those charged by New Zealand. In food and elsewhere, “the Chinese accuse the French will to clarify any input, a lack of monitoring and especially a willingness to export, so that often, especially on the upside, Chinese entrepreneurs are looking for First industrial partners who can help them to invest and go upmarket. ” Finally, writers call to draw on large companies and SMEs nominated for Awards France China, which reward players succeeding in the Chinese market complex.

This year the agency were distinguished Architecture-Studio, based in Shanghai and Beijing, and automotive supplier Valeo. China now accounts for 25% of the global market for automotive equipment, said Edward Pirey, president of Valeo China. Valeo has achieved a turnover of 12 billion yuan (1.57 billion euros) in 2013 in China, the market now accounting for over a quarter of the group’s order intake has he detailed.

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