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    Greater China
     Dec 7, 2007
For Paris, there's no China la rupture
By Federico Bordonaro

As President Nicolas Sarkozy completed his visit to China on November 26, Beijing discovered that its political, diplomatic and industrial relations with Paris won't suffer because of the end of the Jacques Chirac era.

During the 2007 French electoral campaign, Sarkozy's insistence on a new course (la rupture) in both domestic and foreign policy led observers to suppose that rapprochement with Washington could signal sudden coolness in Sino-French strategic ties.

Valerie Niquet, an analysts with the French Institute for International Relations (IFRI), wrote in France's leading financial



daily Les Echos that "uncertainty, if not uneasiness" were the dominant feelings among Chinese diplomats just before Sarkozy's arrival last month. Apparently, Sarkozy's intentions of "re-balancing" Sino-French relations by promoting a "policy of reciprocity" had raised eyebrows in Beijing.

But in the end, while German Chancellor Angela Merkel reiterated last month her purposes to launch a "new foreign policy" based on human rights rather than commercial interests, Sarkozy's visit marked the strengthening of a Sino-French strategic partnership and economic relations.

Even though Sarkozy's speeches in Beijing were framed on the reciprocity concept, and in spite of his wishes to see China adopt a more friendly monetary policy (read: re-evaluate the yuan), the new French president was very clearly on Beijing's side when it came to China's paramount geopolitical interest: Paris supports China's unity and in no way favors Taiwan's or Tibet's independence.

There is more: to Washington's and (especially) Tokyo's displeasure, Sarkozy reaffirmed Chirac's position on the European Union arms ban against China: Paris favors lifting the ban.

Economic journalist Francoise Crouignou summarized it well, writing that it is difficult to harmonize "geostrategy" with the ambitious foreign policy "new course" Sarkozy has been talking about. France's pushy defense, aero-spatial, energy and high-tech companies have long eyed China's ever-growing markets as "the real deal", and such a reality suggests that Paris would restrict its criticism of Beijing’s human rights record to diplomatic rhetoric.

In fact, European observers haven't failed to notice that Sarkozy's emphasis on reciprocity has not been matched by President Hu Jintao's promises to reshape China's monetary policy in order to re-balance Sino-European trade relations. On the contrary, sources have said that Hu has made it clear that "Beijing's monetary policy is to serve China's interests."

Speaking to the press after his encounter with Hu, Sarkozy also stressed how the Chinese president signed a joint declaration that highlights the need to harmonize economic growth with environmental sustainability. However, Beijing remains skeptical about the implementation of Kyoto agreements, as recent news has confirmed.

Back in France, a triumphant Sarkozy greeted his fellow citizens by announcing an "unprecedented' series of economic deals with China. Contracts signed by French aerospace and nuclear power giants Airbus and Areva alone are worth around 20 billion euros.

Airbus has signed a "general agreement" with Chinese authorities, according to which the French aerospace company will sell China 110 short-to-medium range A320 planes and 50 wide-body A330 airliners for a total of over 11.3 billions euros (around US$17 billion). Another 10 A330 aircraft will be sold by Airbus to China's Southern Airlines.

The other big winner is Areva. The energy conglomerate will provide Beijing two third-generation European Pressurized Reactor (EPR) nuclear power plants for about 8 billion euros. The two reactors will be built in Taishan, and uranium will be provided by the Areva-controlled Uramin Group of Canada, thanks to African layers.

Some French observers have pointed out, however, that two plants are all but insufficient to enable France to dominate China’s flourishing civilian nuclear market. Russian and US offers will make competition stiff, and therefore, the argument goes, the deal seems to favor Areva’s finances more than the interests of France’s atomic energy sector. It's a sure thing that a confident smile adorned Anne Lauvergeon, Areva’s CEO, after the agreement.

Other players have also profited from Sarkozy’s visit to reinforce their presence in China.

  • High-tech heavyweight Alcatel-Lucent succeeded in signing a 750 million-euro deal with China Mobile Limited for telecommunication equipment.
  • Defense corporation Eurocopter struck a deal to sell Beijing 10 medium-lift, multi-role EC155 utility helicopters for 80 million euros.
  • Natixis, a bank specialized in financial services and asset management, finalized a cooperation agreement for an energy efficiency program worth 60 million euros.
  • Train manufacturer Alstom signed a 43 million-euro contract to provide Shanghai's underground network with a new signaling system.
  • Maritime transportation specialist CMA-CGM will benefit from a cooperation accord with China to develop the Haicang port in Xiamen, and will detain 30% of its shares worth some 62 million euros.
  • Suez, another major French energy player, will expand its activities in water management in Tang-Jiatuo, near Chingqing, within the framework of a 80 million euros agreement.
  • Sanofi-Avensis, one of France’s leading pharmaceutical companies, will build a factory designed to produced an anti-flu vaccine after a 63.88 million-euro deal.

    Sarkozy's visit to Beijing has shown not only how China's booming strategic markets are too big an opportunity for advanced defense, energy, and high-tech producers to put ideals before interests. It has also demonstrated, beyond any doubt, that China already has one feature typical of all great powers in history: it forces states to take specific stances towards it, and causes dilemmas. In fact, the European Union’s main political powers have different approaches to China: Germany stresses democracy and human rights, while France is eager to continue its strategic partnership with Beijing to such an extent that Paris' enthusiasm for Chinese defense markets may spark tensions with some Western partners.

    The outcome of the French president's trip to China carries some ironic implications. Chirac was perhaps the strongest advocate of a multipolar system during his years at the Elysee, and Sarkozy was expected to limit such aspirations while sticking to US world leadership. In the geopolitical system, a power-pole is defined by its ability to initiate and sustain action independently from another big power. It seems clear that China has such ability, and that multipolarity is on its way to become an accepted reality - whether Sarkozy and his Western sponsors like it or not.

    Federico Bordonaro is Europe editor with the Power and Interest News Report (www.pinr.com).

    (Copyright 2007 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

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