Aircraft manufacturer Airbus, cosmetics company L’Oréal, luxury product manufacturer LVMH, nuclear energy company EDF, high-speed train manufacturer Alstom, water technology company Veolia…
President of France Emmanuel Macron not only the president of the European Commission left for the three-day visit to China Ursula von der Leyen also a group of 60 bosses of large French companies.
Business contracts from China are in the offing for French companies. On Thursday, the aircraft giant Airbus announced that it would double its production in China in the next few years. The CEO of Airbus is in Macron’s entourage in China.
The achievements of the trip are mainly measured by the deals signed by the companies. From the leader of China From Xi Jinping did not make any concessions in the war in Ukraine, at least not yet on Thursday.
– We expect China to do its part and support a just peace – one that respects Ukraine’s sovereignty and territorial integrity. It is one of the cornerstones of the UN Charter, von der Leyen said, referring to China’s status as a permanent member of the UN Security Council.
“The interests of Europe and France are the same”
The main purpose of Macron and von der Leyen’s trip was to persuade China to support the Ukrainian peace process. However, Macron announced before the visit that he also wanted to focus on strengthening trade relations.
The goal is to strengthen the commercial ties between China and France, but also the EU, Macron said at a joint press conference with the Chinese leader Xi Jinping with. He emphasized that the interests of Europe and France are the same.
– Europe’s strategic independence also supports French sovereignty, Macron said.
Macron listed the achievements of French companies in future projects in China and emphasized the importance of cultural exchange between the two countries.
– We want to raise our cooperation to the pre-pandemic level again and make it easier to move between our countries, Macron said.
French economist Jacques Delpla does not find it surprising that Macron emphasized the French issue in his speech.
– Of course he went there to promote France’s interest. In the same way as the German leader pursued the German cause during his visit to China last November. On the other hand, the fact that von der Leyen is involved gives a message that European issues are also on the table, Delpla assesses from Paris.
Human rights violations do not prevent trade
In his speech, Macron referred to China’s human rights issue.
– Of course, the differences between our countries are known and human rights are important to France. The fact that there are differences between us does not mean that they cannot be brought up frankly. However, it must be done with respect for the other person and not give lessons on the subject, Macron formulated.
He gets understanding from the Finnish business community. China is already the EU’s largest trading partner, and cutting off the relationship is not in the interests of either, EK’s trade director Timo Vuori says.
In practice, Europe is completely dependent on, for example, Chinese equipment and materials for renewable energy.
– If we are not ready for a significant drop in the standard of living, then this trade with China must be continued, says Vuori.
China is not only important for companies and Finnish exports, but also imports from China are huge. For example, consumer products that cannot be found elsewhere come from China. China is the EU’s largest importing country.
– Industrial raw materials and parts for which no substitute can be found come from China. This is a bit unrealistic, Vuori says.
It means that the human rights violations of an authoritarian state are reminded, but in such a way that one’s own commercial interests are not endangered.
Finland’s exports to China are decreasing
Finland’s economic ties to China are still strong, even though exports are declining.
In 2021, China was Finland’s largest trading partner in Asia, and in 2022, nearly five percent of Finland’s exports went to China.
– Finland should influence trade policy through the EU, because alone we cannot put pressure on the Chinese government, which has already made it difficult for Finnish companies to do business.
Thinking about geopolitical and geoeconomic risks has become a daily routine for company management. Compared to past decades, the West takes economic relations as a policy tool more easily if, for example, China decides to attack Taiwan or strengthen its support for Russia in Ukraine.
– Inevitably, the United States and the EU would react, and that reaction today is imposing sanctions and sanctioning trade.
Finland does not know how to use EU money
The relationship between China and Europe has been frozen for the past couple of years. It has led to protecting one’s own production, i.e. protectionism on both sides.
Now especially the big EU countries are supporting their companies in the green transition with large sums. Small countries cannot afford it.
The business community is sending a message to Finland’s new government.
– Of course we have to oppose stupid actions and the wrong kind of state aid policy that distorts competition. At the same time, the new government must think about how we can make better use of the EU’s financial instruments. Simply saying no is not smart EU policy.
According to Vuori, several other small countries have managed to get EU funding better than Finland.
Do relations with China provoke thoughts? You can discuss the topic until Friday evening, April 7. until 11 p.m.
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