Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The Macrons were accompanied at the Forbidden City by students from the French international school/AFP

Government

France signs deals with China but warns against ‘pillaging’

The Macrons were accompanied at the Forbidden City by students from the French international school/AFP

BEIJING, China, Jan 9 – Chinese President Xi Jinping and his French counterpart Emmanuel Macron oversaw the signing Tuesday of business deals worth billions of dollars, seeking better trade ties even as France’s finance minister boasted of rejecting those investments he likened to “pillaging”.

The two sides signed deals in the nuclear, aviation and other key sectors on the second day of Macron’s first state visit to China.

Macron, who has positioned himself as the leading voice of the European Union, came to Beijing to discuss an ambitious agenda with Xi, the most powerful Chinese leader in decades.

“We are at a crucial point in the world,” Macron said alongside Xi after overseeing the signing ceremony, pointing to the common challenges presented by climate change and terrorism.

Xi said the two countries would “work hand-in-hand” and hold more high-level talks on trade. He also welcomed Macron’s endorsement of his cherished One Belt, One Road project, a $1 trillion revival of ancient Silk Road land and sea trading routes.

The deals included a memorandum of understanding for French energy giant Areva and Chinese counterpart CNNC to build a 10 billion euro ($12 billion) nuclear spent fuel reprocessing plant in China.

European aerospace giant Airbus announced an agreement with Chinese partners to increase production of its A320 jet in Tianjin to six aircraft per month.

Chinese online retailer JD.com announced plans to sell French goods worth two billion euros ($2.4 billion) to Chinese consumers over the next two years, including high-end wine and cognac.

China also agreed to lift a 16-year-old embargo on French beef within six months, Macron said.

Macron, accompanied by some 50 French business leaders, has laid on the charm during his visit, giving Xi a horse from the Republican Guard as a gift. He also delighted Chinese social media users by releasing a video of him learning to say his climate slogan — “Make the planet great again” — in Mandarin.

Advertisement. Scroll to continue reading.

‘Pillaging investments’

But France, which runs a $30 billion euro ($36 billion) deficit with China, wants to “rebalance” its trade relationship with Beijing and, like other European nations, has demanded reciprocal access to the huge Chinese market.

US and European firms also complain about being forced to hand over intellectual property secrets in order to gain market access.

French Finance Minister Bruno Le Maire, who travelled with Macron, told reporters he has rejected “many” Chinese projects in France.

“We accept long-term investments, not pillaging investments,” Le Maire said.

In a keynote speech on Monday, Macron urged the EU to take part in Xi’s Silk Road initiative, though he warned that it should not create a “new hegemony” for Beijing.

Forbidden City 

Xi, who had already hosted Macron and his wife Brigitte for dinner on Monday night, treated the French leader to a military honour guard at the Great Hall of the People before their meeting.

It is the first state visit by a European leader since China’s Communist Party congress in October, which further strengthened Xi’s grip on power. He was formally handed a second term and his name was enshrined in the party’s constitution.

Advertisement. Scroll to continue reading.

Beijing has praised Macron’s decision to choose China for his first state visit to an Asian nation. US President Donald Trump visited the Chinese capital in November and was given a lavish welcome.

Earlier, Macron and his wife were accompanied by students from the French international school and a French historian as they strolled through the red-walled palaces of former Chinese emperors at the Forbidden City.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...