French officials welcome Chinese investment after receiving 66.8 billion yuan investment from Chinese companies

According to reports, the "2020 Annual Report on Foreign Investment in France" officially released by France pointed out that as of 2020, China has become France's largest Asian source of investment for two consecutive years.

French Ambassador to China Luo Liang made a special trip to Shanghai to release this annual report. He said that he hopes to continue to convey to China that France is committed to continuously improving the investment environment and has always welcomed Chinese investors to invest in France.

According to statistics, last year, Chinese companies had a total of 53 investment projects in France, holding more than 900 companies in France, creating more than 50,000 jobs locally.

China has become France's largest Asian investor for two consecutive years

In recent years, France has become increasingly attractive to foreign investment. In 2020, it has become the largest inflow of foreign investment in Europe, and has also attracted many Chinese companies to invest. Although the investment amount of Chinese companies in 2020 has not yet been announced, data from the Bank of France shows that as of December 31, 2019, France received a total of 8.5 billion euros (about 66.8 billion yuan) in direct investment from China.

In addition, by 2020, China has become France's largest Asian investor for two consecutive years.

Data shows that China's 53 investment decisions in 2020 helped France create or retain 1,697 jobs, an increase of 24% over 2019. According to statistics, Chinese companies have established more than 900 subsidiaries in France and employed more than 50,000 employees locally.

The report also pointed out that the top three business activities involved in China's investment projects in France are decision-making centers, manufacturing, research and development, and engineering, while the Ile-de-France region where Paris is located and the Auvergne-Rhône-Alpes region are the two regions that received the most Chinese investment projects in 2020.

France has become the largest recipient of foreign investment in Europe

At present, the COVID-19 pandemic is still uncertain and affects the world economy. Data released by the Organization for Economic Cooperation and Development (OECD) at the end of April showed that global foreign direct investment (FDI) fell to a 15-year low last year.

In contrast, France's investment attractiveness has shown a certain resilience. In 2020, 1,215 new foreign investment decisions were made in France, a 17% decrease from the previous year, but better than the global average. In 2020, foreign direct investment flows shrank by 33% globally, while investment flows into the EU fell by 19%.

Luo Liang said that behind this data are many advantages of France, including vibrant major industrial sectors, large companies gathered here, high-level researchers and engineering teams, and high-quality infrastructure.

France optimizes policies to attract investment

France became the number one destination for international investment in Europe in 2019, mainly due to its judicial and tax supporting systems.

In addition, Britain's "Brexit" has caused it to lose its first place in the field of international investment in Europe, which has also formed a favorable situation for other countries such as France, especially in the fields of automobiles, aviation and finance. Many investors outside the EU tend to invest in continental Europe, especially in France, to enter the EU single market and enjoy the benefits of the free movement of goods and people.

In order to further attract investment, France has continuously updated its policies in recent years, including reducing corporate income tax, implementing a single tax on capital gains, and adopting research and development tax credits.

In September last year, the French government also announced the launch of an economic recovery plan with a total amount of about 100 billion euros (4% of GDP) - "France Restart". Among them, enhancing competitiveness is the top priority, and 34 billion euros are allocated specifically to significantly reduce the tax burden on enterprises, use fiscal surpluses for the replacement of production tools, and support investment in future technology fields including batteries, medical health, industrial inputs and agricultural products and food.

France welcomes Chinese investors to invest in France

France's representative in China, Luo Liang, also called on China to say, "The French government always welcomes Chinese investors to invest in France."

In fact, as early as last year, Pascal Carney, chairman of the board of directors of the country's Business and Investment Agency, introduced that France's savings rate is as high as 15%, which is higher than other Western countries. To put it bluntly, the French have money to spend, so please feel free to invest boldly.

Pascal Carney also emphasized that France is open to foreign investment, and the overall investment environment is more relaxed than other Western countries. Chinese companies have been very successful in their investments in France, and no related projects were cancelled in 2019. This is in stark contrast to Australia's repeated cancellation of Chinese-funded projects.

Luo Liang said: "France is located in the center of the European single market and is also the gateway to the European market. Its more dynamic population growth than other countries ensures the active domestic market, as well as the good infrastructure and population education level. France has always been very welcoming to Chinese investors to invest in France."