France's Finance Minister Bruno Le Maire has responded to queries regarding potential Chinese investments in construction giant St Gobain. He said he is welcome to the idea, igniting talks about the possibility of another round of talks on the Belt and Road Initiative (BRI).
According to Reuters, reports emerged earlier this week suggesting that French construction behemoth St Gobain was deliberating on selling a 60 percent stake to China's XinXing Ductile Iron Pipes. The stake potentially up for sale is reportedly within St Gobain's Pont-A-Mousson unit.
Speaking with French TV station BFM, Le Maire said, "I would not say 'no' to Chinese investment." Both companies have yet to confirm the reports but some analysts predicted that if the sale goes through, it could open doors for further trade between some of the countries' biggest firms.
Le Maire's statements have raised hopes in Beijing's bid to get France's support for the Belt and Road project. The European state has yet to deliberate with the Chinese delegation on improving the BRI deal's terms so both parties will benefit from the initiative.
Furthermore, France Total and China's Guanghui have struck a 10-year deal on liquefied natural gas (LNG). Some analysts noted that this development could open doors for increased trade between China and France despite no BRI Memoranda of Agreement (MoU) signed during President Xi Jinping's visit to the European nation.
Before Guanghui and Total struck the gas deal, China already established a vast trade connection with France and other member states in the European Union (EU). In his commentary for CNBC, MSI Global President and economy expert Dr. Michael Ivanovitch cited increased exchange between China and the EU since 2012.
The China Railway Corporation also recently revealed that freight trains constructed along the BRI itineraries are allowing for trade between 59 Chinese cities and 49 cities in 15 states in the eurozone. In 2018, freight train trips between the two regions saw a hike of 73 percent.
Diplomatic relations are also expected to strengthen cooperation. Chinese Premier Li Keqiang is set to visit Europe from April 8 to 12. Li will be in Brussels for the 21st China-EU leaders' meeting.
According to Xinhua, Vice Foreign Minister Wang Chao said the upcoming meeting will be co-chaired by Li and European Commission President Jean-Claude Juncker. Also among the chairpersons is European Council President Donald Tusk. It is expected that Li's presence in the meeting will strengthen the China-EU strategic cooperation.
While France has not yet signed a Belt and Road deal as it seeks to negotiate the terms further with China, the country signed business contracts. Analysts believe this move was made as a way of saying that it is not closing doors completely on Beijing's BRI.
