About 600 participants, including top officials from more than 10 French companies participated in the two-day 10th Sino-French Economic Seminar which opened Tuesday in Shanghai.

The seminar focuses on cooperation and competitiveness of French firms operating in China.

"French companies have a wide interest in investing in Chinese companies and public sectors," said Denis Kessler, former French president and honorary chairman of France-China Committee, an organizer of the seminar.

"Economic partnership will further strengthen with China wider-opened in sectors which were formally dominated by state companies."

Plane manufacturer Airbus SAS said it will expand initiatives to outsource manufacturing of Airbus parts to Chinese companies in cities such as Xi'an, Shenyang and Chengdu.

"We also hope to manufacture some parts of Airbus A380 in China in the future," said Philippe Delmas, executive vice president of the company.

The 555-seat Airbus A380, which debuts in 2006, will be the world's largest airplane.

Airbus expects to increase procurement in China to over US$60 million in 2007, compared with US$14.5 million last year.

Veolia Environment Group is talking with the Shanghai government on cooperation in energy resource services, water supply, trash disposal and lighting services.

The group's subsidiary Vivendi Water set up a 50-50 joint venture with Shanghai Pudong Water Co Ltd in 2002.

The company set up garbage incinerators in the city and offered lighting service to the Oriental Pearl TV Tower.

"Shanghai is a very mature market for such public services, Veolia's business will expand fast in the market," said Huang Xiaojun, Veolia China's public relations director.

Groupama SA, France's biggest insurer specializing in agriculture, said it will soon set up a branch in Chengdu to offer insuring services to farmers and the agricultural industry.

Trade between China and France reached US$13.4 billion last year, up 60.9 percent year-on-year, according to the Ministry of Commerce.

Imports and exports between Shanghai and France totaled an accumulated US$4 billion by the end of last year.

The city has 243 foreign direct investment projects from France with contracted funds of US$1.1 billion, according to the Shanghai Council for Promotion of Foreign Trade.

(eastday.com April 14, 2004)