Business ties between China and France — two major manufacturing powerhouses and investors for outbound direct investment — will continue to deepen in the coming years through advanced manufacturing and green development, said government officials and company executives.

With this year marking the 60th anniversary of the establishment of diplomatic ties between China and France, they said that both countries possess economic strengths that are highly complementary, offering extensive opportunities for investment and trade in both goods and services.

China holds a competitive edge in manufacturing electronics, machinery and daily necessities, whereas France is distinguished in sectors such as aerospace, high-end consumer goods, wine and agricultural products, said Lyu Daliang, director of the statistics and analysis department at China's General Administration of Customs.

"As the comprehensive strategic partnership between China and France deepens further, enhanced communication and stronger cooperation are set to elevate bilateral economic and trade relations to new heights," said Lyu.

Total trade volume between China and France reached 555.11 billion yuan ($76.87 billion) in 2023, up 3.1 percent year-on-year. China's imports from the Western European country amounted to 262.42 billion yuan, surging 10.9 percent year-on-year, customs data showed.

China's transition from emphasizing the scale and speed of foreign investment to focusing on quality has led to a significant increase in French investment in the high-tech manufacturing, green and consumer goods sectors, said Zhao Yongsheng, a professor specializing in French economics at the Beijing-based University of International Business and Economics.

According to statistics from the Ministry of Commerce, French investment in China surged 586 percent year-on-year in the first two months of this year.

China's visa-free policy for several European countries, including France and Germany, will also lead to increased business activities between the two sides in the next phase, said Zhao.

Fueled by an automobile production boom and green transformation in China, Michelin Group, the French tire and mobility company, will increase passenger car tire capacity at its factory in Shenyang, Liaoning province, this year to meet soaring market demand.

Matthew Ye, CEO and president of Michelin China and Mongolia, said the company will continue to invest in factories in China to embrace market and consumer demands.

The group, headquartered in Clermont-Ferrand, France, is advancing its ongoing expansion project, which began in Shanghai in November last year. The project aims to create a green and intelligent future factory with an annual increase in tire production capacity of 1 million units.

Ye said the company will introduce more businesses beyond tires to China such as high-performance adhesives and high-end engineering fabrics and films. These are designed to cater to highly technical segments such as industrial devices, electric vehicles, sports and construction.

Similar views were expressed by Barbara Coppola, CEO of French sporting goods retailer Decathlon. "China is one of the group's key markets, and the company will continue investing in supply chain development and building new stores within the country," she said.

"China is distinguished as a major global market with extensive capabilities, encompassing industrial, logistical, product design and retail strengths," said Coppola, emphasizing that Decathlon benefits from a fully integrated supply chain within China.

China's importance to Decathlon is both significant and multifaceted, she added.

The increasing demand from many countries for infrastructure enhancements — including next-generation oil refineries, new energy vehicles, modern factories, roads, airports and container ports — presents opportunities for both French and Chinese banks, project design firms, contractors and manufacturers of materials and equipment, said Zhang Xiang, vice-president of the Beijing-based China International Contractors Association, which helps Chinese companies facilitate new business in overseas markets.

"China's proposal for third-party market cooperation within the Belt and Road Initiative could benefit both Western and developing economies without leading to a conflict of interests," said Zhang.