French finance minister arrives for talks

16  January 2013

French Finance Minister Pierre Moscovici started a two-day visit to China on Monday, aiming to convince China that France remains an attractive investment destination.

Moscovici will hold talks with authorities as well as major Chinese investors, including Lou Jiwei, president of China Investment Corp, the $410-billion sovereign wealth fund, according to the French Finance Ministry.

Moscovici is the first ministry-level official from France to visit China since the leadership transition in November. He will also deliver a keynote speech at Renmin University of China in Beijing on Tuesday.

In an interview with French media on Sunday, Moscovici said that the purpose of his trip to China is to convince investors that the French market remains open and attractive despite the concerns and doubts about the economic prospects of France.

“Cooperation between France and China is mutually beneficial and we welcome Chinese investors,” he said.

He also called for more investment from China’s sovereign wealth fund as the amount of French investment in China is four times larger than that of China in France.

The minister announced that he will discuss the issue of the yuan’s exchange rate and said that the topic is not taboo.

France’s trade deficit with China reached 27 billion euros ($35 billion) in 2011, accounting for 38 percent of France’s total trade deficit.

In 2011, France overtook Britain as the largest investor in Chinese mergers and acquisition markets.

Meanwhile, the amount of Chinese investment in Europe in 2011 for the first time exceeded the amount of investment by European companies in China. Chinese companies invested a total of 11 billion euros in Europe as opposed to 7 billion euros invested by European companies in China, according to a report from accounting firm PricewaterhouseCoopers in France.