Xi's visit unleashes potential for future Sino-French cooperation

Editor's Note: Liu Mingli is deputy director of the Institute of European Studies, CHINA Institutes of Contemporary International Relations. The article reflects the author's opinion and not necessary views of CGTN.

Chinese president Xi Jinping's Paris visit, made at the 55th anniversary of CHINA-France diplomatic ties, was warmly welcomed by the French side. The two sides signed a slew of business contracts worth billions of euros on Monday, unleashing potentials of their future bilateral cooperation.

While French president Emmanuel Macron embarked on his first CHINA trip at the very beginning of 2018, president Xi chose Europe as his first foreign destination of 2019, highlighting the importance CHINA has attached to its ties with Europe and France.

CHINA-France friendship has a long history. As the first Western country to establish diplomatic relations with Beijing, Paris has been playing a leading role in Western diplomacy toward CHINA.

The smooth development of Sino-French bilateral relations owed much to their mutual understanding and mutual trust, to which regular high-level visits and people-to-people exchanges between the two sides is a major contributor.

Xi's France visit is a positive response to Macron's CHINA visit last year. It will undoubtedly further promote exchanges and lay a more solid foundation for their future bilateral cooperation.

Chinese president Xi Jinping attends a welcome ceremony hosted by French president Emmanuel Macron before their talks in Paris, France, March 25, 2019. /Xinhua Photo‍

CHINA and France are important partners in many areas. Given the changes in the regional and global environment, there is still much room for the two countries to deepen their cooperation.

First of all, supporting multilateralism is critical to the global economy and security especially as a certain superpower has been advocating unilateralism and protectionism. Both CHINA and France, as permanent members of the UN Security Council, are sincere supporters of multilateralism.

Both countries support the Paris climate agreement and the Iran nuclear deal signed in 2015. During his visit in France, president Xi is also scheduled to talk with German Chancellor Angela Merkel and European Commission president Jean-Claude Juncker. This highlights Beijing's and Paris' commitments to multilateralism.

Secondly, finance is expected to be a key area of cooperation between the two sides. With the UK divorcing from the EU, France is rising as the financial center of the bloc. Paris has many financial advantages and has been striving to attract more global financial institutions and businesses.

This provides opportunities for financial cooperation between CHINA and France. Paris is looking forward to becoming an important offshore center for the RMB. In the future, the internationalization of RMB can give more consideration to the financial market in Paris, such as the issuance of RMB-denominated bonds.

At the international monetary system level, France is also influential. It contributed greatly to the establishment of the Jamaican System in the 1970s, ratifying the end of the Bretton Woods System.

Chinese president Xi Jinping holds talks with his French counterpart Emmanuel Macron at the Elysee Palace in Paris, France, March 25, 2019. /Xinhua Photo

For a long time, the U.S. has been using the U.S. dollar as a geopolitical tool, which has sparked growing international complaints. The European Commission has clearly expressed its intention to promote the euro's international role.

France has also promoted a Special Purpose Vehicle with the UK, Germany and other countries to establish a new payment system that is not dominated by the United States. CHINA and France have consensus and room for cooperation in avoiding the risk of the U.S. dollar's hegemony and promoting diversification of international currencies.

Thirdly, there could be more coordination and cooperation on investment policies. As a developing country, CHINA used to be a major absorber of international investment. But in recent years, many Chinese companies have gone out and invested abroad, including in the high-tech sector.

CHINA's four decades of reform and opening-up demonstrates that foreign investments are vital in economic growth. But in some countries, there is a tendency to politicize Chinese investments. This may hinder economic cooperation between CHINA and these countries.

If France can attract more Chinese investments through pragmatic policies, it will not only see better economic performances but Sino-French interactions will also set an example of mutually beneficial cooperation at the global stage.

It is reasonable to expect that the content of Sino-French bilateral cooperation will be further enriched after Xi's visit.

(Cover photo:Chinese president Xi Jinping (L) meets with French president Emmanuel Macron in the southern French city of Nice, March 24, 2019. /VCG Photo)

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