Study On French Direct Investments In China

France is one of the major EU members. It is placed the sixth in the economic world powers, the fifth in world trading powers, the fourth in foreign investors; France is also China’s major trading partner and foreign Investors:It is the third largest investor and the second big technology supplier in the EU members, while China is France’s eighth largest exporter, the eighth largest importer and the ninth foreign investor. In world politics, France, as one of the five permanent members of the security council of UN, plays an important role in promoting world peace and stability,France is the first western country who establishes diplomatic relationship with us (1964), and further, In1997, two coutries built a long-term comprehensive strategic partnership. As early as in1966, Air France, as the first french company installed in China, opened the flights Paris-Shanghai. At present, in the21st century, almost all French big groups, such as PSA, EDF, Alcatel, Michelin, Total, EIF, Rhodia, Lafarge, SaintaGobain, Thomson, Schneider, Alstom, Carrefour, L’Oreal etc have begain business in China, especially in recent years, those french small and medium-sized enterprises flock to China with a business rising at an annual rate of20%to25%. For the French investors China is not only a huge overseas market, but also a strategic fulcrum to enhance their international competitiveness. Of course, French enterprises have met the various problems and challenges, but for most of them, china is further their opportunity. On the other hand, their development in our country makes up our shortage of funds, and promotes effectively our trade growth, technological progress, employment and industrial structure upgrade etc.The dissertation follows the thinking of research as follows:through the overall grasp of the general situation of Freche foreign direct investment, especially through its development in China, analyze the background, the development level and the stategies of French direct investment in China, sensibilize the difficulties and challeges that French enterprises have met in China and try to find the causes reasonable, and further analyze the contribution brought by French direct investments to France and to China. Based on these analyzis, I try to propose some suggestions on how China atract French direct investments. The dissertation is divided into three parts, a total of eight chapters:The first part:Introduction and Theories. Including chapter1:introduction and chapter2:theories related.This part intouduces the research significance, research methods, literature review, originality and inadequacy of the dissertation and explaines the theories on foreign direct investment from three aspects:micro, meso and macro, to make a theorical preparition for the later analysis.The second part:Analysis. Including chapter3,4,5,6. Chapter3:combing the development trace of French foreign direct investments, analyzing its characteristics, scale, mode, geographical distribution etc, and further making a treatment on the French laws and policy to promote its foreign direct investment. Chapter4:clarifing the development of French direct investment in China, investment scale, regional distribution, etc. Chapter5:Explaining why French enterprises invest in China, how grow French enterprises in China. It is exposed from four aspects:to occupy Chinese domestic market; to build its export base in China; to set up its procurement base; to establish its research and development base. Chaptre6:difficulties and challeges that French investors met. They are:China’s existing industry protection; China’s relevant policies; China’s intellectual property rights protection; conflic with the Chinese partner; unbalanced human resources; culture conflict between oriental and western and so on.The third part:Conclusion and Suggestions. Including chapiter7and chapter8. Analyzing the contributions and impacts to China and to France brought by French direct investment in China and try to propose some suggestions on how China attracts French investments. Chapter7Contributions and impacts to China and to France. French investements in china brought some impacts on French local employment, promoted the access in china of French small and medium-sized enterprises to France and other influences; the impacts on China mainly showed on Chinese economic growth, Chinese foreign trade and Chinese technological progress. Chapter8Conclusion and suggestions. through the above theorical and practical analysis of French direct investements in China, some proposal and suggestions made and trown out to attract French direct investment and especially three new countermeasures proposed (1) to set up a service dedicated for French or European companies, to make them better understand China’s market opportunities and investment policy, to improve French enterprises to invest in China;(2) to strengthen the cooperation between small and medium-sized enterprises of two countries, this cooperation can be favorable to obtain business opportunities in favour of French small and medium-sized enterprises, but also helpful to improve the developpement level of China’s small enterprises.(3) to learn to French advanced technology and management experience, this will be more useful than to settle the local employment and production.