Why China | CCI France Chine

CCI FRANCE CHINE banner with the text "Why China, why now"

The world's second-largest economy full of opportunity, demanding in equal measure.

#2

Economy in the world

1.4bn

Consumers, 65% urban

$6.36tn

Total goods trade (2025)

~2,100

French subsidiaries

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An economy moving up the value chain

China is shifting from low-cost manufacturing to high value-added activity. Services are now the primary growth engine, and high-technology exports rose more than 13% in 2025. For foreign companies this means a market that increasingly rewards quality, innovation and brand not just price. R&D spending reached 2.8% of GDP, with strength in EVs, semiconductors, robotics and renewables.

A consumer market like no other

A vast, young, digital-first middle class is reshaping demand. Consumption is moving from goods to experiences wellness, healthcare, leisure and premiumisation is the dominant trend: shoppers trade up for quality and proven results. China is the world's largest e-commerce market, where Tmall, JD.com, Douyin and WeChat, powered by KOLs, are the real point of entry for any foreign brand.

Where French companies win

French exports to China reached US$26.4bn in 2024. The strongest fit is where Chinese demand meets recognised French expertise.

Wines & spirits

France is China's top wine supplier; ~40% of wine consumed is imported. Premiumisation and online sales drive demand.

Cosmetics & beauty

World's 2nd-largest beauty market; premium set to reach ~53% share. Strong appetite for French skincare and fragrance.

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Luxury & fashion

A core global growth driver for French houses, recovering steadily and increasingly digital, domestic and youth-driven across China.

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Agri-food

Foreign brands trusted for quality and safety; dairy, meat, fine food and beverages in demand.

Healthcare

An ageing population and wellness boom fuel demand for med-tech, pharma and senior services.

Aerospace & advanced industry

Aircraft, machinery and components remain among France's largest exports to China.

France and China: a deep, long-standing tie

France is the leading European investor in China by number of companies around 2,100 subsidiaries employing some 307,400 people. The relationship spans aerospace, energy, agri-food, luxury, healthcare and finance, with household French names present across the country for decades. China is also one of France's most important trading partners in Asia.

Demanding why a local partner matters

We won't pretend China is easy. Our 2026 Business Confidence Survey shows a majority of French companies citing regulatory complexity, intensified local competition and geopolitical tension. China is also not one market but a continent of regional economies. The companies that succeed move best-informed, not fastest.