Spotlight: Western media's negative image on Chinese economy surprises French entrepreneurs

Emmanuel Gros and his cousin Cyril Benoit, two French entrepreneurs who deal with investment business between China and France, have closely monitored the evolution of the Chinese economy for at least four years. As witnesses on site in China, they were surprised by the negative image of the Chinese economy described by some Western press.

At a breakfast press held recently in Paris, MM. Wholesale and Benedict shared their views with the guests. In their eyes, the growth slowdown and stock fluctuations are far from the full picture of the Chinese economy. In reality, China is in an important economic transition, which will bring lots of new opportunities in the country's market.

CHINA NOT AT EDGE OF COLLAPSE

"I am very surprised by the very negative general image of China presented by certain French press," said Mr. Gros, Co-founder of the company Benedict & Associates Investment Bankers, during the breakfast press.

"When we see on the ground, several figures present a different image of the Chinese economy," he noted, adding that during the last year in China, the volume of retail sales increased by about 11 percent, passenger vehicle sales achieved a growth of over 7 percent, the nominal income per capita Chinese has increased almost 9 percent.

According to Benedict, founder of Benedict & Associates, the importance of risk that the Chinese economy is facing should not be exaggerated. For example, although the ups and downs have taken place on the Shanghai Stock Exchange since last June, but the stock market fluctuations do not have shaken the fundamentals of the Chinese economy, nor reflected the real fundamentals.

"We must see that the Chinese stock market finances the economy only by three percent, so (in case of stock market crash), it has little influence for the country," he said, adding that the Chinese stock market is more easily influenced by irrational emotion because most investors in this market are individuals, instead of institutional as in the Western countries.

For Mr. Benedict, who worked in the political circle of the French State before embarking on his commercial business, and who has also been termed as one of the top "pioneers" among entrepreneurs of the country, he was "impressed by the quality of the training expertise of the Chinese leadership on the economy."

Sometimes the economic policies initiated by China are better than those of some Western countries, he said.

Each year, there are media, experts, announcing that the Chinese economy is very unstable, the Chinese economy can not continue, etc., however, this is far from reality, noted Gros.

CHINESE MARKET FULL OF NEW OPPORTUNITIES

The Chinese economy is experiencing structural transition and the country's market is full of opportunities, stressed Gros and Benedict during their exchanges with the press.

Where are the new opportunities? In Chinese consumers, Benoit said.

In the coming years in China, with emerging middle class, rising per capita income, quality of life will be the key word in the heart of the demands of Chinese people, according to the entrepreneur.

"How I dress, what I eat, how I treat myself, how I educate my children ... there are a lot of things," he said, adding that French companies, which are famous in sectors such as tourism, luxury goods, etc., will benefit particularly from this development.

"It's the French time on the Chinese market, and we must seize this opportunity," noted Gros.

In his opinion, the acceleration of Chinese investment in foreign countries brings also new opportunities for France and Europe. Compared to the beginning of the century, Chinese companies going outside of China have clearer targets today, as new technologies are their favorites.

The two entrepreneurs have also provided advices for Chinese and French companies which want to foothold respectively in Europe and China.

According to them, Chinese companies need to improve their communication with the local community during their entry in Europe, because a communication "transparent, accurate and fast" will facilitate by a large degree their successes on the continent.

And French companies must not enter the Chinese market without learning to do marketing on social networks, where the internet is already a key platform for Chinese consumers with about 700 million Internet users. Endit