Injecting new impetus into the development of China Europe relations

  This visit is the first visit by a Chinese head of state to Europe in nearly 5 years, and is of great significance for promoting the overall development of China Europe relations with France, Serbia, Hungary, and China Europe.  

The performance of Sino French economic and trade cooperation is impressive

This year marks the 60th anniversary of the establishment of diplomatic relations between China and France. France was the first Western power to establish ambassadorial level diplomatic relations with New China, and China France relations have long been at the forefront of Sino Western relations.

In the field of economic and trade, the data on Sino French cooperation is very impressive: after 60 years of development, France has become China's third largest trading partner and third largest source of actual investment within the European Union. China is France's largest trading partner in Asia and the seventh largest in the world. From 2019 to 2023, the average annual growth rate of China's imports and exports to France was 5.9%. In the first quarter of this year, China's imports and exports to France amounted to 127.22 billion yuan. In 2023, France's direct investment in China reached 1.34 billion US dollars, an increase of 77% compared to 2022. In the first two months of this year, France's direct investment in China increased by 585.8% year-on-year.

Barbara Frye, Global Executive Vice President of Schneider Electric in France, stated that Schneider's continuous investment in China is due to its confidence in the development prospects of the Chinese market. She said that China has now become a more mature economy, and the Chinese market is full of vitality, challenges, but more opportunities.

In the Upper France region of northern France, there is a "Battery Valley" with a total length of about 100 kilometers. A battery box factory invested by China Minshi Group has been officially put into operation locally. Within the factory, dozens of welding robots and handling robots are working in an orderly manner. The advanced technology and experience brought by China have helped French partners save money and time costs.

Li Wenguo told reporters that the China Council for the Promotion of International Trade has played an important role in the process of economic and trade exchanges between China and France. In 1953, the China Council for the Promotion of International Trade facilitated the first private trade between China and France. In September 1964, with the strong support of the China Council for the Promotion of International Trade, the first French Technology Exhibition was held in Beijing. In July 1988, the China Council for the Promotion of International Trade established a representative office in France. In addition, the China Council for the Promotion of International Trade, together with the French Employers Association and the Franco China Committee, has jointly hosted the Sino French Economic Seminar for 20 consecutive years. Former President d'Esten, former Prime Minister of Lafarlane, and Chinese leaders have attended all the seminars.

Since the beginning of this year, China France exchange activities have been brilliant and have provided more opportunities for China France economic and trade cooperation. We organize local activities for member companies of the French Chinese Chamber of Commerce in France, exchange ideas with Vice Chairmen of the Normandy region, Mayors and Vice Mayors of Rouen, Le Havre, and Cherbourg, as well as local chambers of commerce and enterprises, to celebrate the 60th anniversary of the establishment of diplomatic relations between China and France, and explore ways to enhance Sino French economic and trade cooperation. We also collaborate with the Franco China Committee to hold events such as the 2024 Purple Meeting and the Franco China Innovation Conference. We also hold and support economic and trade activities such as the Hubei France Paris Enterprise Cooperation Exchange Conference, the Shanxi (France) Industry Cooperation Promotion Conference, the French Agriculture Exhibition China Pavilion, and a series of celebration activities such as the Sino French New Year Celebration and the Sino French People's Story Exhibition. We have revised the "Report on the Development of Chinese Enterprises in France (2023-2024)". Organize specialized training on the EU's carbon border regulation mechanism and a symposium on overseas business risks for Chinese enterprises. ”Li Wenguo said.

Jointly build the "the Belt and Road" into a focal point for cooperation

Yang Chengyu stated that in the Central and Eastern European region, Hungary and Serbia have maintained very close ties with China in recent years, both politically and economically.

Serbia is China's first comprehensive strategic partner in Central and Eastern Europe, and the two countries have a strong friendship. In 2023, China and Serbia signed a free trade agreement, which became the first free trade agreement signed between China and Central and Eastern European countries; Hungary is an important country in Central and Eastern Europe and the first European country to sign the "the Belt and Road" cooperation document with China. The high-quality joint construction of the "the Belt and Road" has become a continuous focus of bilateral cooperation.

Serbian Minister of Construction, Transport and Infrastructure Wesic said in an interview with the media a few days ago that Serbia has cooperated extensively with China within the framework of jointly building the "the Belt and Road" and achieved fruitful results, which has promoted the overall development of Serbia and neighboring countries. Among them, the Hungary Serbia railway project jointly built by China, Hungary and Serbia is a model of successful cooperation in jointly building the "the Belt and Road".

The Hungarian Serbian Railway connects the capital of Serbia, Belgrade, and the capital of Hungary, Budapest. It is the first project to connect China's railway technology and equipment with the European Union's railway interconnection technical specifications. At present, the construction of the Serbia section has been almost completed, and the progress of the Hungary section has been generally smooth since the start of construction in July 2020. After the completion of the entire line, the time from Budapest to Belgrade will be shortened from 8 hours to 3 hours, greatly facilitating personnel and logistics exchanges between Hungary and Serbia, significantly driving economic development along the line, and effectively promoting north-south connectivity in the Central and Eastern Europe region.

This year marks the 75th anniversary of the establishment of diplomatic relations between China and Hungary. In recent years, the economic and trade relations between the two countries have flourished, and pragmatic cooperation has yielded fruitful results. China has become Hungary's largest trading partner outside of Europe and also the most important partner for investment in Hungary. According to Hungary's statistics, the bilateral trade volume between the two countries exceeded 13 billion US dollars in 2023. China's direct investment in Hungary reached 7.6 billion euros, accounting for 58% of the total foreign direct investment in Hungary, creating over 10000 job opportunities. Hungary has been China's top investment destination in Central and Eastern Europe for many consecutive years.

Morditz Chobao, head of the International Relations School at the Matthias Korvinus College in Hungary, stated that after Hungary implemented its "opening up to the east" strategy, the proportion of foreign direct investment from China has increased significantly, from the original 1% to 9%, making the composition of foreign investment in Hungary more diversified and beneficial to Hungary's economic security. Taking the automotive industry as an example, the value chain size of Hungary's automotive manufacturing and related industries accounts for 15% of the gross domestic product. To maintain the position of this industry in the global value chain, it requires investment and technology from China in new energy vehicles and related industries, which will become an important area for future cooperation between Hungary and China.

Yang Chengyu stated that during this visit, China may also sign a series of bilateral cooperation agreements with Hungary and Serbia, which will further strengthen and deepen China's future economic and trade ties with Hungary and Serbia.

For future cooperation between China and France, Li Wenguo suggests that firstly, China and France can focus on areas such as green and low-carbon, biomedicine, agricultural food, creative design, and financial services to enhance exchanges and cooperation; Secondly, we can work together to promote the services of small and medium-sized enterprises between China and France, and explore new growth opportunities for Sino French economic and trade cooperation; Thirdly, we can fully leverage the unique advantages of China and France, design practical projects, and cooperate to explore third-party markets; Fourthly, it can enhance economic and trade cooperation between local provinces and cities, and create a better cooperation environment.