France loses China but gains 15 billion in foreign investments

During the seventh edition of the Choose France summit, France reached a decisive milestone by attracting foreign investments worth 15 billion euros, a historic record. This event, held at the Château de Versailles on May 13, 2024, highlights a major geopolitical shift: while American companies now dominate investment flows, China, once a key player, is gradually retreating. This dynamic not only reflects a global strategic shift but also the growing attractiveness of France as a hub for innovation and economic growth.

A geopolitical turning point in foreign investments

At the Choose France summit held on May 13, 2024, in Versailles, 56 investment projects were announced, totaling 15 billion euros. Among these investments, 44% come from American companies such as Microsoft, Amazon, and Pfizer. Microsoft announced an investment of 4 billion euros to support French growth in the field of artificial intelligence. Amazon announced over 1.2 billion euros of investments, creating more than 3,000 direct permanent jobs. Pfizer plans to invest 500 million euros in France over the next five years through public-private partnerships focused on innovation. “This year marks a turning point with a clear predominance of American investments, in contrast to 2023 when Asian companies represented 52.6% of investments,” highlights the Élysée.

In 2023, Asian investments dominated with major contributions from Prologium and XTC, respectively 5.2 billion and 1.5 billion euros in the battery sector. In contrast, in 2024, only 3.9% of investments come from China, including the New Silk Road sovereign fund. Hunan Changyuan Lico, a battery material manufacturer, announced a 600 million euro investment, but the total amount of Chinese investments remains unknown. This drastic decrease in Chinese investments signals a significant strategic shift. Additionally, European companies come in second place with 36% of total investments, confirming the diversity of funding sources and the increased attractiveness of France.

Economic and geopolitical implications

The long-term implications of these investments are numerous and strategic. The increase in American contributions could solidify transatlantic economic ties, which in turn, would stimulate economic growth, technological innovation, and job creation in France. Major projects in key sectors such as artificial intelligence, health, and transportation could position France as a leader in innovation and cutting-edge technology.

Meanwhile, the decrease in Chinese investments could reflect a redefinition of China’s geopolitical priorities, perhaps oriented towards other regions or economic strategies. This provides France with an opportunity to further diversify its economic partners and strengthen its relationships with other economic powers.

In summary, the Choose France 2024 summit illustrates a significant change in international investment flows, with an American predominance and lesser Chinese participation. This new distribution of investments supports the French government’s priorities in terms of reindustrialization and the development of strategic sectors.