Core interests should be the focus as China and France take stock of their relationship

Ironing out the wrinkles in Sino-French relations and taking more proactive steps to deepen bilateral ties will be the main tasks for French President Francois Hollande during his forthcoming visit to China.

Although Sino-French relations have had their setbacks, both sides feel it is time to set aside differences and take the relationship onto the next stage. By being the first leader from a major Western nation to visit Beijing since the leadership change in China, France has already indicated that China figures prominently in its agenda.

But there are still several aspects that both sides should consider while pressing ahead with more bilateral exchanges.

First of all, both sides should respect each other's core interests. Any country, big or small, rich or poor, has a core interest. China respects the core interests of France, and similarly France should also respect China's core interests.

In other words, China adheres to the path of peaceful development, but it does not mean that it should give up its core interests. The new leadership in China has frequently said the country will not sacrifice its core interests for the sake of doing business, so France needs to respect those interests. One of those interests is sovereignty.

Second, more needs to be done to highlight the importance of economic and trade cooperation. China and France are each at different stages of development, and their economies are highly complementary. China needs France in its pursuit of what has been called the Chinese dream. At the same time, France needs China, the world's largest emerging economy.

Such reciprocity has undoubtedly created a better environment for Sino-French trade and prospects of a win-win solution for both sides.

Bilateral trade between the two sides has grown to $51 billion (39 billion euros) by the end of last year, compared with $13.4 billion in 2003. Among the EU member states, France is now China's fourth largest trading partner after Germany, the Netherlands and the United Kingdom.

However, to enhance bilateral economic and trade relations, China needs to increase direct investment in France, bearing in mind the French concerns on the rising Sino-French trade deficit.

China should continue to open its market to French products and capital, and better protect French property rights. If France wants to reduce its trade deficit with China, it needs to curb the spread of the "China threat theory", look at the role of China on the world economic stage in a peaceful manner, and relax the restrictions on technology exports to China.

Third, both sides must maximize the effectiveness of the Sino-French comprehensive strategic partnership. To achieve this goal, they should seek common ground on the basis of mutual respect and trust and in accordance with equality, mutual benefit and win-win principles.

They also need to explore new areas for cooperation and look beyond the differences in ideology and social systems.

The current international, political and economic situation has undergone profound changes. China and France, as permanent members of the UN Security Council, should also shoulder more responsibility in maintaining world peace and promoting development.

China and France have supported each other on many international issues. For example, on March 31, 2011, France proposed and organized a high-level International Monetary Reform Conference in Nanjing.

The then French president Nicolas Sarkozy had said that all countries should work more closely to deal with the volatility in the exchange rate, the disorderly flow of cross-border capital, the challenges of the global liquidity.

His speech was with a particular emphasis on the needs and role of emerging markets. He also expressed his support for the emerging market currencies, including the renminbi to join the Special Drawing Rights currency basket, so as to reflect the status quo of the world economic structure and the changes in economic fundamentals.

"Sino-French relations are the most politically stable and most economically in-depth bilateral relations and the closest in international affairs," said the then Chinese premier Wen Jiabao, when he met the visiting French president Jacques Chirac, on Oct 10, 2004. That judgment holds true.

The author is professor and deputy director of the Institute of European Studies at the Chinese Academy of Social Sciences. The views do not necessarily reflect those of China Daily.

(China Daily 04/19/2013 page7)