Helping French business on textiles
By Alex Singleton on Sep 14, 2007 in Globalisation
It is commonly believed that it is in the French national interest to keep quotas on textiles from China. The idea of French business as sickly and needing constant protection is unfortunate and inaccurate. But it is fuelled by constant demands from French politicians to protect this industry or that, and of course to promote “national champions”. In reality, France is home to many extremely successful blue clip companies that compete extremely well on the global state.
Limiting textiles imports from China is bad for the French economy, and probably even in the very short term. One of France’s most successful companies, hypermarket group Carrefour, is a shining example of a world-leading French company. It operates in over 30 countries. But its profits are very much dependent on manufacturing in China. According to the China People’s Daily:
In 2002, Carrefour purchased a variety of products worth of 1.6 billion US dollars in China, making up 66 percent of its whole purchasing volume… In Carrefour’s stores, about 60 to 70 percent of goods are made in China.
Textiles quotas may delay tough choices for France’s (relatively small) textiles manufacturing industry. But they cause significant damage in the retail sector, in which France is a major European (and global) player. Let’s face it, France is home of some of the world’s most talented fashion designers. It would do better by allowing the outsourcing of textiles manufacturing jobs to China, and then profiting from the high-value work, designing clothes and retailing them.
