Economic and trade relations between France and China have enormous potential and France expects to widen the cooperation with China in these fields, said French Minister Delegate for Foreign Trade Christine Lagarde before her visit to China on July 4-5.

The trade volumes between the two countries have increased at an annual rate of 20 percent in last years, said Lagarde in an exclusive interview with Xinhua. Trade with China, however, accounted for merely 3.2 percent of France's total trade volumes with foreign countries, she said.

The French-Chinese economic and trade relations have great potential to develop, she noted. However, they do not yet match the good political relationship between the two countries, she added.

She suggested the two governments strengthen bilateral cooperation in the two fields by improving the cooperation between French and Chinese small and medium-sized enterprises and by increasing French collaboration in building big projects with technologies China needs.

Bilateral economic and trade relations will emphasize the cooperation of small and medium-sized enterprises in the future, she noted.

President Jacques Chirac has set a target of doubling the number of French small and medium-sized enterprises investing in China within two years, said the official. She expected over 1,000 French enterprises to come to China this year to run businesses.

Lagarde has planned several trips to China this year, aimed at promoting the commercial activities of small and medium-sized companies.

France is willing to provide China with technologies in various fields, including nuclear energy, railway transportation, water processing, and aviation, said Lagarde.

At present, the number of French enterprises in China stands at 1,100 and France is the third biggest investor in China among European Union countries, she said.

In sharp contrast to French investment in China, the investment of Chinese enterprises in France is still very small.

In 2004, Chinese investment accounted for just 2.5 percent of total foreign investment in France, Lagarde said.

Compared with 2003, when the investment of Chinese companies in France was just 0.6 percent of its total foreign investment, an upward trend of Chinese investment can be seen, Lagarde said, adding that she was "happy with the trend."

Lagarde remarked that the agreement on textile products signed between the EU and China last month showed that the two sides are willing to solve trade conflicts through negotiations and constructive plans.

The agreement will, on the one hand, guarantee a rational increase of the export of Chinese textile goods to the EU and, on the other hand, make it possible for the textile producers in the EU to adapt to new conditions in the textile industry.

Lagarde will visit Beijing to inaugurate a French exhibition on housing and interior decoration. She will also meet with senior Chinese officials including Vice Premier Wu Yi.

The exhibition, organized by a French agency for international development and co-sponsored by the Chinese commerce ministry, will be held on July 5-9. More than 100 French exhibitors will participate in the event.

Source: Xinhua