The push back against Chinese technology investments abroad has continued this week during French President Emanuel Macron’s visit to China, with one official suggesting China’s practices amount to “looting.”
French finance minister Bruno Le Maire said on Tuesday in Beijing that, from now on, Chinese investments in France will be screened, reportedly adding, “and I reject many.”
The official’s comments come as Macron seeks to push for a more balanced trade relationship, echoing US President Trump’s focus on trade deficits. Macron has said that he hopes to reduce France’s US$35 billion trade shortfall with China.
Not pulling punches in his characterization of controversial Chinese investments, Le Maire was quoted by Reuters as saying, “we accept long-term investments but not looting.”
Responding to media reports of Macron’s trip, Chinese state-run Global Times suggested that France take a look in the mirror when talking about the trade deficit:
A lack of competitiveness is the main reason for France’s trade deficit with China. The traditional export fields such as high-speed trains, cars and communication devices have not performed well in the Chinese market. French products cannot compete with those from Germany and the US. Also, the emerging “Made in China” plan has also shaken the sales of French products in China.
The editorial said that French automakers, such as PSA Peugot Citroen and Renault perform weakly against German brands, while phone maker Alcatel has fallen by the wayside amid the popularity of Apple and Huawei.
In addition to upping its game, the commentary said, France also needs to cough up technology to keep up in the Chinese market.
“If [the French automobile industry] only uses China as a manufacturer without offering core technologies, it will inevitably lag behind […] To cut its deficit with China, France has to increase its competitiveness, revive its own economy and deepen cooperation with China in high technology.”
Wish the French official can present a concrete example of such "looting" – a word reserved for acts of force, fraud, or deceit. His choice of the word in effect implies that those in charge of French hi-tech businesses (owners, CEOs, lawyers etc) are imbeciles or helpless children. Without concrete evidence, I’d reject such a claim, and instead presume that the French official is a moronic lying politician.
The Chinese economic model, is based on a command economy of the Communist era.
Workers come very low on the list of priorites, as does China wide infrastructure needed for the Chinese people.
China buys cheap raw materials, and transforms these with artifically low wages, enforced by Chinese currency control, and dumps these goods onto the international marketplace. The Chinese Communist economy is very good at this, and at the same time restricts such practices from happening in China.
The lack of internal competition, for wages, for profits and as a way of making the cost of living lower in China, comes at a great cost to all.
Be assured, that once Chinese interests have cornered the market, prices for the mediocre goods will skyrocket.
In terms of trade, the Chinese business model is unfair, unjust and unsupportable.
This is only possible with tight, iron fisted, financial and social controls enabled by a WW2 era Communist regime.
China needs to consider the welfare of its people first, as these people have worked out their lives to enable the Chinese economy to bloom.
China needs to float its currency, so that Chinese goods, on the world market, are at a fair price.
Chinese goods you mentioned including brands like Dell Computer, Apple iPhone and computer, Ford, GM, Chrysler cars, Walmart and many western brands. What are they doing there? To exploit the workers there as you said?
This comment is delayed by about 15 years. The new reality is substantially different.
Low Shen-Cheang They are there, only at the behest of the Communist Party of China, for no other reason, than for that Party to provide low paid workers for western countries. This is why they are there, there is not much profit in either manufacturing or selling low priced goods that you mention.
Remember Low, that the Chinese dictatorship needs trade, needs western companies setting up there.
That is why anything but infrastructure and easing the living of the underpaid, impoverished Chinese worker, should be priority number one.
Space programs, NK puppet regime, nuclear arms race, Spratley Island militarisation, these are a waste of precious resources and achieve nothing.
Merlin Geikie . My many friends in China don’t agreed with your racist comment. . How many days have you been in China? Your outdated racist thinking and comment made Chinese people vomited
good
Enghuajimmy Chua Personal attack and posturing as a victim, simply show that you have no argument against mine. No points made.
Merlin Geikie plz meet a doctor, you are suffering china fever