1. 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

2. 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

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

4. (%, estimates after 2008)
Real GDP growth
Inflation rate

5. 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

6. 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

7. FDI inflows, by region and economy, 2002–2009 (Millions of dollars)
Region/economy
2002
2006
2007
2008
2009
World
716128
Developed economies
547778
Europe
427560
631724
European Union
420433
590305
Switzerland
6276
30 839
51 681
5 085
9 695
Canada
21507
59 761
55 270
18 657
United States
71331
Australia
15632
27 864
45 477
46 722
22 572
Japan
9239
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
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

8. FDI outflows, by region and economy, 2002–2009 (Millions of dollars)
Region/economy
2002
2006
2007
2008
2009
World
652181
Developed economies
599895
Europe
396868
799581
European Union
384549
697193
Switzerland
7859
75821
56 592
51 143
15 501
Canada
26758
44401
59 637
80 797
38 832
United States
134946
224220
Australia
7876
23418
16 822
32 819
18 426
Japan
32281
50266
73 548
74 699
New Zealand
185
501
3 703
-239
-406
Brazil
2482
28 202
7 067
20 457
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
1 584
Russian Federation
3533
23 151
45 916
56 091
46 057

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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)

18. 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

19. 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

20. 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

21. 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

22. Thank you!