Research Center For China-EU Economic Cooperation (CCEEC), UIBE Sino-France Economic cooperation: mutual benefits and sustainable development Xia Youfu Research Center For China-EU Economic Cooperation (CCEEC), UIBE Sep.29, 2010

Main Contents I. Development of China II. The rapid development of Sino-EU and Sino-France economic cooperation III. The contributions of economic cooperation IV. Main problems existed V. Opportunities and sustainable development of Sino-France economic cooperation

I. Development of China Surface Area: 9,598,1 1000 sq km Population: 1,334.7 Millions of inhabitants - 2009 (estimates after 2008) Current GDP: 3,519.5 Billions of euros - 2009 (estimates after 2008) GDP per capita: 2,636.8 Euros - 2009 (estimates after 2008) * Exports-to-GDP ratio: 25.2 % (2009) Imports-to-GDP ratio: 19.4 % (2009) Trade-to-GDP ratio: 44.5 % (2009)

(%, estimates after 2008) 2006 2007 2008 2009 Real GDP growth 11.6 13.0 9.6 8.7 Inflation rate 1.5 4.8 5.9 -0.7

Merchandise trade: Leading exporters and importers, 2009 (Billion dollars and percentage) Rank Exporters Value Share Importers 1 China 1202 9.6 United States 1604 12.7 2 Germany 1121 9.0 1006 8.0 3 1057 8.5 931 7.4 4 Japan 581 4.7 France 551 4.4 5 Netherlands 499 4.0 6 475 3.8 United Kingdom 480 7 Italy 405 3.2 446 3.5 8 Belgium 370 3.0 410 9 Korea 364 2.9 Hong Kong 353 2.8 10 351

Leading exporters and importers in world trade in commercial services, 2009 (US$ Billion and percentage) Rank Exporters Value Share Importers 1 United States 470 14.2 331 10.6 2 United Kingdom 240 7.2 Germany 255 8.2 3 215 6.5 160 5.1 4 France 140 4.2 China 158 5 129 3.9 Japan 146 4.7 6 124 3.8 4.0 7 Spain 122 3.7 Italy 114 3.6 8 101 3.0 Netherlands 87 2.8 9 Ireland 95 2.9 10 92 Canada 77 2.5

FDI inflows, by region and economy, 2002–2009 (Millions of dollars) Region/economy 2002 2006 2007 2008 2009 World 716128 1 461 074 2 099 973 1 770 873 1 114 189 Developed economies 547778 972 762 1 444 075 1 018 273 565 892 Europe 427560 631724 988 422 551 059 378 388 European Union 420433 590305 923 810 536 917 361 949 Switzerland 6276 30 839 51 681 5 085 9 695 Canada 21507 59 761 108 414 55 270 18 657 United States 71331 237 136 265 957 324 560 129 883 Australia 15632 27 864 45 477 46 722 22 572 Japan 9239 - 6 506 22 550 24 426 11 939 New Zealand 738 7 758 3 441 4 993 348 Brazil 16590 18 822 34 585 45 058 25 949 China 52743 72 715 83 521 108 312 95 000 India 3449 20 336 25 001 40 418 34 613 South Africa 757 -527 5 695 9 006 5 696 Russian Federation 3461 29 701 55 073 75 461 38 722

FDI outflows, by region and economy, 2002–2009 (Millions of dollars) Region/economy 2002 2006 2007 2008 2009 World 652181 1396916 2 267 547 1 928 799 1 100 993 Developed economies 599895 1157910 1 923 895 1 571 899 820 665 Europe 396868 799581 1 367 624 992 106 439 584 European Union 384549 697193 1 287 277 915 780 388 527 Switzerland 7859 75821 56 592 51 143 15 501 Canada 26758 44401 59 637 80 797 38 832 United States 134946 224220 393 518 330 491 248 074 Australia 7876 23418 16 822 32 819 18 426 Japan 32281 50266 73 548 128 019 74 699 New Zealand 185 501 3 703 -239 -406 Brazil 2482 28 202 7 067 20 457 - 10 084 China 2518 21 160 22 469 52 150 48 000 India 1107 14 344 17 233 18 499 14 897 South Africa -399 6 067 2 966 - 3 134 1 584 Russian Federation 3533 23 151 45 916 56 091 46 057

Development of China in 2010(up to Aug.) GDP(up to June):11.1% Foreign trade: total US$1876 billion, 40%; exports US$989.7 billion, 35.5%; imports US$885.8 billion, 45.5% Utilization of FDI:US$67 billion, 17.2% Outward investment:US$32 billion

Problems in China Still the largest Developing country in world Large population and low Per capital GDP: 1/10 of France Economic structure-GDP by sector: in 2008, agri-11.3%; industry-48.6%; services-40.1% Regional structure: costal-east-middle-west; rural-urban Environmental protection & resources restriction International competitions of enterprises: technology, brands, low value-added in industrial chain Weak soft power

II. The rapid development of Sino-EU economic cooperation Since establishment of diplomatic relationship in 1975, trade in goods increased from US$2.4 billion to US$240 billion in 2008, increased by 175 times. In 2009, US$364 billion, decreased by 14.5%; up to Aug.2010, US$305.8 billion, increased by 36%. EU: China’s No.1 trade partnership, No.1 exporter, No.2 importer, No.1 imports of technology, No.3 FDI China: EU’s No.2 trade partnership, No.2 exporter, No.1 importer

Sino-EU Trade in goods,1995－2010(up to Aug.) Unit: US$100 million Imports & exports % of China’s trade % of extra-EU trade 1995 403.4 14.4 2.8 2000 690.4 14.6 3.8 2003 1252.2 14.7 5.7 2007 3561.5 16.4 10.6 2009 3640.4 16.5 11.4 2010* 3058 16.3

The rapid development of Sino-France economic cooperation Trade in goods: compared with 2002, total trade increased by 368%, exports by 473%, imports by 268%; France investment in China: accumulated to the end of Aug.2010, about US$10 billion in China: From Jan. to Aug.2010, US$721 million

Sino-France trade in goods, 2002-2010(up to Aug.) US$100 million Total % Exports Imports 2002 83 6.9 41 10.5 42.5 3.6 2005 206 17.5 116 17.3 90 17.8 2006 252 22 139 19.5 113 25.2 2007 337 33.7 203 46.1 133 18.3 2008 389.4 15.7 233 14.6 156.4 17.2 2009 345 -11.5 215 -7.5 130 -16.7 2010 291 36.6 178 36.1 37.3

III. The contributions of economic cooperation-mutual benefits Contributions to establishment of overall strategic partnership; Economic growth Structural adjustment Employment Welfare of consumers and living stadarnds Technological progress Development of enterprises

IV. Main problems existed From France aspects: Market access of China both in trade and investment, WTO commitments (2) Protection IPR (3)Government procurements From China’s aspects: (1)Market economic status/treatment (2)Arm embargo and high tech prohibition (3)Trade protectionist rising in EU (4)Business visa, working and living permission (5)Intervention of ideology and elections of leaders

From both sides Low level and percentages in trade Low percentage in investment: less than 0.5% of France’s outward investment in 2008 and 0.58% of France’s outward investment stock (up to 2009)

Trade in goods of France and China and their position for each other(US$100 million) exports % imports Total Exports Imports 2002 6,208 1.3 3,256 2,952 1.4 2005 4590 2.0 4960 2.3 14221 7620 1.5 6601 2006 4900 5330 2.6 17607 9691 7916 2007 5520 2.4 6130 3.3 21738 1.6 12180 1.7 9558 2008 6090 7080 25616 14286 11331 2009 4750 2.7 5510 3.9 22073 12020 1.8 10060 2010 18756 9897 8858

France’s position in trade with China, 2008 US$ million Total Exports Imports % Export Import China 256,163,205 142,854,571 113,308,634 17.8 17.2 18.5 EU 42,557,769 29,287,820 13,269,950 19.5 19.6 Germany 11,500,901 5,917,408 5,583,493 22.2 21.5 23.0 Netherlands 5,121,109 4,591,040 530,069 10.5 10.8 7.6 UK 4,562,363 3,606,866 955,497 15.7 13.9 22.9 France 3,894,363 2,330,394 1,563,970 14.6 Italy 3,825,570 2,660,848 1,164,723 21.9 25.7 14.1 Spain 2,616,552 2,074,160 542,392 24.8 25.5 22.4 Bulgium 2,019,652 1,485,841 533,810 14.4 7.3 Finland 1,086,129 733,149 352,980 4.9 11.7 -7.0 Sweden 1,015,441 511,491 503,950 16.8 12.4 21.7 Denmark 816,570 556,918 259,652 27.3 21.3 42.4

Opportunities and sustainable development of Sino-France economic cooperation No fundamental contradiction So many similar interests and views: peace and development; multi-pillar world; Role of UN; new international economic order; adjustment China’s development is opportunity not challenges to France: 8% growth of GDP and No.2 importer in the world; huge market; No.1 GDP in the world within 20 years Sino-France relationship: should be good model of cooperation and mutual benefits, establishing harmonized world

Some suggestions Strengthening cooperation: from trade in goods to investment, services and high-tech; from trade to integration of industries Cooperation in newly strategic industries , esp. low carbon economy Comprehensive free trade agreement between China and EU Against trade and investment protectionism Cooperation in multilateral rules and regimes in trade, finance and environmental protection China-EU economic cooperation forum in Shanghai; Sino-France constructive cooperation forum

Thank you!