China Wants More Investment from French Firms, Xi Tells Macron

China's President Xi Jinping (L) arrives for the APEC Economic Leaders' Retreat, during the annual Asia-Pacific Economic Cooperation conference at the Moscone West Convention Center in San Francisco, California, USA, 17 November 2023. (EPA)
China's President Xi Jinping (L) arrives for the APEC Economic Leaders' Retreat, during the annual Asia-Pacific Economic Cooperation conference at the Moscone West Convention Center in San Francisco, California, USA, 17 November 2023. (EPA)
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China Wants More Investment from French Firms, Xi Tells Macron

China's President Xi Jinping (L) arrives for the APEC Economic Leaders' Retreat, during the annual Asia-Pacific Economic Cooperation conference at the Moscone West Convention Center in San Francisco, California, USA, 17 November 2023. (EPA)
China's President Xi Jinping (L) arrives for the APEC Economic Leaders' Retreat, during the annual Asia-Pacific Economic Cooperation conference at the Moscone West Convention Center in San Francisco, California, USA, 17 November 2023. (EPA)

China wants more French companies to invest in the country and hopes France will provide a fair business environment for Chinese firms, President Xi Jinping said on Monday, while France also called for fair rules for foreign companies in China.

Xi made the comments in a phone call with French President Emmanuel Macron, Chinese state television reported, seeking to strengthen ties with its European trading partner after Macron visited China in April.

China faces an electric vehicle subsidy investigation by the European Union and a looming probe into its steelmakers. Meanwhile, several European countries have complained about China's opaque laws and rules regarding foreign companies in the country.

"China is willing to maintain high-level exchanges with the French side," Xi said, adding that he welcomed more French products entering the Chinese market.

Macron's office said the opening of the Chinese market should go hand-in-hand with fair competition rules for foreign companies.

Asked whether France had made progress to counter Chinese plans to force French cosmetics companies to share manufacturing secrets with Chinese parties, a French presidential adviser said it was a major issue that Macron had raised himself.

"It's an important point for us, considering what's at stake for French companies," the adviser said.

Macron's office also said China had joined a French initiative called "Buildings Breakthrough" that sets a zero carbon emissions goal for the building sector for 2030.

Xi also said China was willing to strengthen cooperation with France at the United Nations and other multilateral institutions. China took over the presidency of the UN Security Council (UNSC) this month.

The leader of the world's second-largest economy also called on France to play a constructive role in promoting the positive development of China-EU relations, as ties have been strained over issues ranging from the EU's push to reduce supply chain reliance on China to the war in Ukraine.

"China and the European Union should remain partners for mutually beneficial cooperation," Xi said in the call.

The two leaders also exchanged views on the conflict in Gaza, and agreed that it was imperative to avoid a further deterioration of the situation, in particular an even more serious humanitarian crisis, state television reported.

The French presidential adviser said China, as a member of the UN Security Council, should contribute more to UNRWA, the UN Palestinian refugee agency than the $1 million it currently gives every year.

"We encourage the Chinese authorities to do much more," the adviser said.



Saudi Arabia Has Most Stable Inflation Rate Compared to G20 Countries

A supermarket in Saudi Arabia (Asharq Al-Awsat)
A supermarket in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Has Most Stable Inflation Rate Compared to G20 Countries

A supermarket in Saudi Arabia (Asharq Al-Awsat)
A supermarket in Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia has managed to control inflation in recent months, recording 1.5 percent in June, on an annual basis. This shows that the Kingdom is one of the most stable countries in the G20, with an inflation rate that remains inferior to the global target of 2 percent.

Data issued by the General Authority for Statistics (GASTAT) on Tuesday revealed that residential rents had the biggest influence on inflation in June, compared to the same month last year, as they rose by 10.1 percent.

On a monthly basis, the inflation rate decreased in June, reaching 1.5 percent, compared to 1.6 percent the previous month.

Experts told Asharq Al-Awsat that the rate shows the efficiency of Saudi Arabia’s economic management and liquidity to ensure a balance between growth and inflation. They said the government is making great efforts to adopt the adequate procedures and measures in order to confront the wave of inflation and rising prices that has recently swept the world.

Economic policy analyst Ahmed Al-Shehri told Asharq Al-Awsat that the inflation rate in Saudi Arabia is still under control, and below the global target, noting that it has decreased to 1.5 percent last June, after witnessing slight increases over the past months.

According to Al-Shehri, the annual inflation rate reaching 1.5 percent is mainly due to the increase in housing rental prices by 10.1 percent.

He said the cash supply in Saudi Arabia reached SAR2.9 trillion ($778.1 billion), in parallel with the slowdown in annual inflation to record 1.5 percent in June, which reflects the efficiency of economic management and liquidity to ensure a balance between growth and inflation.

For his part, legal advisor and professor of commercial law, Dr. Osama Al-Obaidy, told Asharq Al-Awsat that the government has resorted to early precautionary measures that helped avoid the inflation crisis.

The stability of the inflation rate highlights the success of the Kingdom’s financial policies and its support for the private sector, in order to raise manufacturing productivity and increase strategic reserves of basic materials and ensure their availability, he said.