France’s struggling factories need investment. Is China the answer?
World

France’s struggling factories need investment. Is China the answer?

Economy World



This year marks half a century of formal diplomatic relations between China and the European Union as well as the 25th anniversary of the founding of the European Union Chamber of Commerce in China. This piece, the third of a series of reports examining ties between the two powers, looks into attitudes towards Chinese investment in France.

Born and raised in the central French town of Châteauroux, Laurent Joly has spent his entire life working in local factories.

Throughout his 38-year career, Joly likely never thought that one day China would have a significant impact on his life, let alone that his job would be saved by a Chinese company.

But that is precisely what happened when Joly’s employer – the French automotive supplier Groupe Mécanique Découpage (GMD) – was acquired by the Suzhou-based Dongshan Precision Manufacturing (DSBJ) in May.

The deal will allow the struggling French industrial group to keep the lights on at its 15 factories, with DSBJ pledging not to make any job cuts for a year and to maintain at least 80 per cent of the company’s 1,800-strong workforce the year after, according to Joly.

Chinese investors often face strong resistance in France due to geopolitical concerns, but the GMD acquisition shows how China could play a crucial role in reinvigorating the French and European manufacturing sectors by providing much-needed capital, industry insiders and analysts said.

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