💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

France says China spat won't harm trade ties

Published 11/28/2008, 05:43 AM
Updated 11/28/2008, 05:46 AM

By Crispian Balmer

PARIS, Nov 28 (Reuters) - French Foreign Minister Bernard Kouchner said on Friday that prickly relations between France and China should not cause lasting damage to commercial ties, and that a diplomatic row would blow over.

China abruptly cancelled a summit with the European Union, scheduled for Monday, to protest plans by French President Nicolas Sarkozy to meet the Dalai Lama in Poland next month.

France holds the EU's rotating presidency and Beijing has suggested that French trade interests might be hurt by the Polish meeting, but Kouchner played down the risks.

"I don't think one should overemphasise the negative or perhaps damaging aspects of this temporary worsening of our relations with China," he told France Inter radio.

"Some industrialists are worried, which is very legitimate, but as far as I know at the moment nothing has being cancelled ... I believe contracts will be honoured," he added.

China was France's eighth largest export market according to 2007 trade data and the fifth largest importer and has some major contracts outstanding that are not yet finalised.

European planemaker Airbus, which is headquartered in France, received an order last year from China for 160 aircraft, its largest ever single order in volume terms, but only 140 of these have been confirmed on the Airbus order book.

Airbus denied on Thursday that the cancellation of the summit had scuppered any negotiations with China and Kouchner said he did not think the Airbus contracts were at risk, saying the planes were being assembled in China.

"The Airbus planes are Chinese-built," he said.

Sarkozy has said he will meet the exiled Tibetan spiritual leader in Poland next month, ending months of speculation over whether the politically sensitive meeting would go ahead.

The Dalai Lama visited France in August but did not meet Sarkozy during his two-week stay, which coincided with the Beijing Olympic Games, prompting critics to accuse the French leader of caving into pressure from China over the issue.

French officials have sought to play down the significance of the Polish meeting, which will not be the main focus of Sarkozy's trip, and Kouchner said German and British leaders had already held talks with the Dalai Lama.

"That didn't cause lasting damage to trade between China and their two countries and I hope that, despite this sad gesture, which we regret, we think trade relations as well as the political and friendly relations between China and France will be restored," he said.

"What is important is that we always have the same bond of friendship with the Chinese people and things will improve. Our intentions are innocent," he added.

China took over Tibet in 1950 and the Dalai Lama fled into exile in 1959 after an abortive uprising against Chinese rule. He has since lived in India, travelling the world to promote his cause, and is still widely revered in his homeland. (Editing by Matthew Jones)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.