2020–2025 Strategic Overview
An overview of trade dynamics, investment trends, and the interaction of industrial policies.
01. Executive Summary
Economic relations between France and China remain significant, with robust trade volumes across multiple sectors. The period 2020–2025 has seen evolving trade dynamics, characterized by structural discussions regarding trade balances and the implementation of new industrial policies within the EU framework.
Annual Trade Deficit
€41.0 Bn
2024 Trade Balance
France's Export Rank
#7
China is FR's 7th largest client
EV Tariff Rate
45.3%
Max EU Tariff on Chinese EVs
02. Trade Trajectory (2020-2025)
The post-pandemic recovery saw trade volumes surge. Imports from China have generally outpaced French exports, leading to a persistent trade deficit that peaked in 2022.
03. Bilateral Trade Composition
France's primary exports include aerospace technology and luxury goods. Conversely, imports are characterized by electronics, machinery, and a growing share of electric vehicles.
🇫🇷 French Exports to China
Key Sector: Aerospace and Luxury Goods are the leading export categories.
🇨🇳 French Imports from China
Key Sector: Electronics remain dominant, with EVs increasing in share.
04. Trade Policy Developments
Between 2023 and 2025, regulatory frameworks evolved significantly, with the EU introducing new measures regarding electric vehicles and China initiating inquiries into agricultural imports.
EU Investigation
Oct 2023
EU launches anti-subsidy investigation into imported electric vehicles.
Subsidy Reform
Late 2023
France updates "Ecological Bonus" criteria based on carbon footprint analysis.
EU Vote
Oct 2024
EU member states vote on definitive tariffs for electric vehicles.
Trade Measures
Jan 2025
China initiates anti-dumping measures regarding French Brandy (Cognac).
05. Investment Landscape
Investment strategies are adapting to the new regulatory environment. Chinese investment in France is increasingly focused on greenfield projects, while French firms in China emphasize localization.
China in France:
Green Manufacturing
Chinese investment is prioritizing local production facilities, particularly within the automotive supply chain and battery manufacturing sectors.
- "Battery Valley" Initiatives (e.g., Douai)
- Partnerships with European Automakers
France in China:
Localization Strategy
French companies (approx. 2,100 subsidiaries) are adopting "In China, For China" strategies to maintain market presence while navigating global supply chain shifts.
- Focus: Luxury, Retail, Services
- Local production for domestic market
06. Diplomatic Timeline
Key milestones in the bilateral relationship.
State Visit to China
President Macron visits Guangzhou and Beijing to discuss economic cooperation and geopolitical stability.
State Visit to France
60th Anniversary of diplomatic ties. Discussions focused on trade balances and international issues.
Strategic Dialogues
High-level talks aim to address specific trade issues through negotiation.
State Visit to China
President Macron visits China to discuss a "balanced framework" for economic relations and address trade imbalances.