China-France cooperation powers transformation of traditional French industries

Chinese investments are bringing new development opportunities to Hauts-de-France, a traditional industrial region in northern France, as local governments actively attract Chinese new energy enterprises to participate in the region's industrial transformation.

The Hauts-de-France region was once home to Griset, a copper processing company with a history of over 260 years and a pillar of France's metallurgical industry. Faced with global competition and fluctuations in metal prices, the company teetered on the brink of bankruptcy until its acquisition by TNMG, China's leading copper producer, enabled it to rise from the ashes under the name TG Griset. "Today, we have achieved our production target of 7,000 tons per year. This is a remarkable change compared to when we started back in 2016, when a small team of just 12 people launched operations. Now we have 70 employees, along with new projects, development prospects, and a future strategy. The group has also provided us with investment support," said David Derache, general manager of TG Griset.

Located nearly equidistant between Paris and London, as well as nearby the industrial heartlands of Western Europe, Hauts-de-France enjoys huge geographical advantages and a solid foundation in the automotive industry, with carmakers like Renault and Stellantis present. Official data shows that the region has drawn nearly 50 Chinese enterprises to invest and establish operations across sectors including automotive, energy, and chemicals.

Leading the charge the promotion of the region is Nord France Invest, which offers support to international companies and investors seeking to expand in Hauts-de-France.

"We go on a regular basis in China to meet with Chinese groups and, once again, to explain where we are, what we do, and how we can help them choose our region and make sure that we are the hub for them in Europe and the best gateway for Chinese investment here," said Yann Pitollet, CEO of Nord France Invest.

Beyond capital, Hauts-de-France values China's strengths in the new energy vehicle (NEV) manufacturing sector, particularly in batteries and materials. For this traditional industrial region, attracting Chinese enterprises is not only about drawing investment but also about the electrification transformation and the future development of its automotive industry.

"The best-selling electric vehicle in France today is a Renault car -- the Renault 5. It uses Chinese batteries, and these batteries are produced right here in the Hauts-de-France region. These modern examples -- whether in electric vehicle batteries, related investments, or the development of port industries -- show that these new industrial developments are significant for regions like ours," said Xavier Bertrand, president of the Hauts-de-France Regional Council.

China-France cooperation powers transformation of traditional French industries

Rising military tensions in the Persian Gulf are casting a heavy shadow over Iraq's economy, raising concerns about the fate of oil exports and maritime trade.

The recent targeting and burning of two foreign tankers carrying Iraqi oil within Iraq's territorial waters marks a significant escalation, signaling that a closure of the Strait of Hormuz is now a tangible threat. Such a scenario would halt Iraq's oil exports to global markets, dealing a severe blow to an economy that relies on oil revenues as its main source of funding for both operational and investment budgets.

With the main maritime route for its oil exports disrupted, Iraq is now looking to the central bank's reserves to cushion the shock of lost oil revenues and to ensure the payment of government employees' salaries.

"The other impact Iraq fears is the economic fallout from the closure of the Strait of Hormuz. This will affect Iraq just as it will other countries, but it will hit Iraq harder, because Iraq relies mainly, almost 90 percent of its resources, on oil sales. So the economic impact on Iraq will be significant. The consequences are both political and economic," said Hamza Mustafa, an Iraqi journalist.

The Iraqi government has few alternatives for exporting oil through other routes. The Ceyhan pipeline, which carries Iraqi oil through Turkey, remains shut, leaving the Gulf, now a conflict zone, as the only outlet. Recently, Iraqi officials have begun discussing the need to boost non-oil revenues to mitigate the economic impact of the ongoing conflict.

"We are doing everything in our power to keep this war away from our country, because Iraq cannot withstand more conflict. Our country has reached a critical economic stage in recent years, both before and after the previous regime. We have learned many lessons. As parliament, we will push for decisions that serve our citizens and our country," said Saqr Al-Muhammadawi, a member of Iraq's parliament.

According to a statement by Alireza Tangsiri, commander of the Iranian Navy, the Strait of Hormuz has not yet been militarily blocked and is merely under control. The strait "is only closed to the tankers and ships belonging to our enemies, to those who are attacking us and their allies. Others are free to pass," he said.

Gulf tensions raise fears for Iraqi's oil-funded economy