French President François Hollande Visits China: Green Energy Seals Business Relationships Between t

On November 2nd and 3rd, 2015, French President François Hollande visited China as part of his worldwide trip to convince different countries into signing an agreement on climate change, during COP21. At CBA, we wanted to focus on the business aspect attached to these types of visits. Indeed, President Hollande came with representatives of different Franch companies. They wasted no time binding commercial agreements, which for most of them deal with energy and how to manage this energy wisely. What is there to remember about these agreements?

The visit of Li Ke Qiang

First of all, business relationshpis between France and the world's first economical power are becoming stronger and China is now France's sixth commercial partner, second non-European behind the Unites States. Besides, President Hollande's visit follows Chinese Prime Minister Li Ke Qiang's in France just a month prior - which resulted into a massif order of 75 Airbus A330 to Beijing. In addition, some contract that were planned this summer have soon been signed this November, such as the Engie contract with Beijing Gas for the industrial collaboration for 2022 Winter Olympics in Beijing.

CNNC ( China National Nuclear Corporation) to collaborate with EDF and Areva

The contract signed by Engie and Beijing Gas is an example of this particular relationship between the two countries in the energy sector, most specifically regarding the research of responsible managing solutions. Engie had an agreement with Huaneng in the past, one of the five biggest companies in the area of public electricity in China, about training and protecting the environment. But the energy that reprensents best the convergence of China and France is nuclear power. Considerated as a responsible energy, nuclear power is an industry where France is at the forefront and China represents 40% of new reactors constrution market. Thus, EDF and CNNC have signed a collaboration agreement for the creation of third generation nuclea plants in the world. In addition, Areva annouced its soon to be acquired shares of CNNC, as minority shareholder.

Together toward energy transition?

Last but not least, we can ask ourselves if these agreements are revealing a turn that the two countries have taken for a more resposible economy. We notice in that way the promise Amundi made with ABC (Agricultural Bank of China) to fund a part of the Chinese energy transition. We can highlight the letter of mutual intent of EDF, Datang and San Men Xia city to improve heat collection in Henan nuclear plants in order to reuse it in the 400 000 houses and reduce 60 000 tones of gas emissions per year. This commitment are to re-evaluate when we know that China is the world's biggest polluter. As for France, the country can only adopte a "green" position to stand its role of host country for COP21.

President Holland's visit has confirmed the good relationships between France and China, espacially in the energu sector. And when it is still to early to talk about a engergy transition in China, both countries are going the collaborate even more in the future for more enviromental-friendly mesures. Will COP21 be a success? Absolutly. But this type of meeting is undeniably a good thing for the two countries.

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