"In 2000, just 150,000 sets were sold in Europe but in 2014 we sold 1 million. Now overseas sales account for around 20 percent of our sales," Ning says, stating that the goal is to reach 2 million sets in sales annually in the next three years.

The French service industry has also attracted many Chinese companies. As the largest bank for renminbi overseas trading, Bank of China works with many French companies, such as Renault and Airbus, on renminbi transactions and trades.

The yuan is used in more than 44 percent of bilateral transactions between the two countries and will become an increasingly important currency in the near future, the bank's president Chen Siqing says. This is a major turnaround, he added, as only three years ago just 6.5 percent of transactions between France and China were settled using the yuan.

To cater to growing market needs, a Bank of China renminbi clearing center opened in Paris in 2014, and it became the first Chinese bank in France providing yuan clearing services.

Last year, during Premier Li Keqiang's visit to France, the countries decided to launch a third-party market cooperation agreement, marking a new stage for Chinese-French cooperation.

This means that through joint development, investment, and production in some third-country markets, both countries will bring more products made by both countries to the global market, and the codevelopment model will become a prime example for other Western countries to working with China in the future, Gao says.

Challenges remain

Even though the French have introduced more favorable policies for Chinese investors, such as faster processing for visas and local residency permits, there are still many challenges for Chinese companies entering the French market, says Phan.

Labor and tax laws are very different from Chinese ones, he explains. For example, French tax law has more than 1,000 pages and changes every year, but every company must understand it when entering the market.

"Due diligence is very important for a Chinese company considering entering the European market. Some Chinese companies encounter difficulties or are even forced to exit the French market due to lack of due diligence," Phan adds.

This viewpoint is echoed by Wu Shaohua, head of the French division of the Export-Import Bank of China. Wu stresses the importance of Chinese companies being up to date on the French legal framework and conducting due diligence before rushing into unfamiliar market territory.

tuoyannan@chinadaily.com.cn

( China Daily European Weekly 01/29/2016 page1)