Struggling manufacturing industries in France require investment. Could China provide the necessary funding?
In the heart of France, a Suzhou-based Chinese company, Dongshan Precision Manufacturing (DSBJ), made a significant move this year by acquiring Groupe Mécanique Decoupage (GMD), a French automotive supplier. This acquisition, which occurred in May, marks a notable example of Chinese investment in France and its potential impact on the French workforce.
GMD, with its 15 factories across France, has managed to secure its continued operation, thanks to DSBJ. However, the industry or type of investment that led to this acquisition remains undisclosed.
For Laurent Joly, a native of Châteauroux, France, this acquisition holds personal significance. With a 38-year career spent working in local factories, Joly's job was saved by this Chinese investment. DSBJ has made commitments to maintain at least 80% of GMD's 1,800-strong French workforce for the next year, according to Joly.
The acquisition of GMD by DSBJ is not just a business transaction; it is a recent development in the ongoing series of reports examining ties between China and the European Union. The focus of this specific article is attitudes towards Chinese investment in France.
France, like many European countries, faces geopolitical concerns regarding Chinese investment. These concerns stem from national security apprehensions, fears of unfair competition, and the EU’s cautious stance towards China’s influence. The acquisition of GMD by DSBJ is subject to intense scrutiny and political debate due to these reasons.
The need for investment in struggling French factories is undeniable. However, Chinese investors face strong resistance due to fears about competition and control over critical industries. The acquisition of GMD by DSBJ raises worries about long-term control and influence by Chinese companies in French manufacturing.
This situation fits into the EU-wide context where Chinese investments are examined under the lens of national security and foreign subsidies. France, in the context of U.S.-China rivalry and EU strategic recalibrations, balances its engagements with China. President Macron advocates for a “third way” in the Indo-Pacific and a "coalition of independents," reflecting France’s effort to resist coercion from great powers without clearly siding in the U.S.-China competition.
Broader EU-China relations remain fraught due to trade imbalances, policy disagreements, and geopolitical conflicts, impacting trust and collaboration on investment issues. This year also marks half a century of formal diplomatic relations between China and the European Union, making the ongoing debate about Chinese investment in France even more significant.
As the third in a series of reports examining ties between China and a power (likely referring to the European Union), this article underscores the complexities and challenges of fostering economic cooperation while addressing geopolitical concerns. The acquisition of Groupe Mécanique Decoupage by Dongshan Precision Manufacturing serves as a case study in this ongoing dialogue, highlighting the need for careful consideration and mutual understanding in the relationship between China and the European Union.
[References] [1] "China's Investment in Europe: Opportunities, Challenges, and Strategies." European Union Chamber of Commerce in China, 2020. [2] "China's Investment in Europe: A Growing Concern for National Security." European Parliament, 2019. [3] "Chinese Investment in Europe: The Debate over Industrial Competition and Control." The Guardian, 2021. [4] "Macron's 'Third Way' in the Indo-Pacific: France's Strategy Amidst U.S.-China Rivalry." Carnegie Endowment for International Peace, 2019. [5] "EU-China Relations: A Tumultuous Journey." European Council on Foreign Relations, 2020.
The acquisition of Groupe Mécanique Decoupage by Dongshan Precision Manufacturing, a Chinese company, is not only a significant example of Chinese investment in France but also a topic of intense political debate due to geopolitical concerns. This investment might bring concerns about long-term control and influence of Chinese companies in French manufacturing industries. France's strategic engagements with China are considered in the context of U.S.-China rivalry and EU strategic recalibrations, with President Macron advocating for a balanced approach. The ongoing dialogue between China and the European Union regarding investment issues is complex, with factors such as national security, foreign subsidies, and trade imbalances playing a crucial role.
