France defies critics with foreign investment paradox
- French Q2 FDI inflows third biggest after China, U.S.
- France top European destination for new foreign plants
- Government sending foreign investors mixed messages
I suppose the interesting thing is how the FDI is broken down as over 75% of the FDI is ‘Other Capital Investment’. I’m really curious what ‘Other’ represents. If a Vineyard in France is sold to a Chinese investor would that fall under ‘Other’? My guess is, yes. Take for example the local anger over a Burgundy vineyard, here or Richard Shen Dongiun in Bordeaux, here.
France is a fiscal paradise for some.
Foreign Direct Investment is great until you’ve exhausted your supply of vineyards… The article speaks to the R&D advantage and the access to talent, but it ignores, ‘Other Capital Investment’.
Moreover, French firms invest more than double abroad what foreign companies invest in France. While that might reflect a healthy push for foreign market share, it could also be driven by a desire to avoid high labor costs at home.
“The question is whether the foreign investments reflect a decision not to invest in France,” Ferrand said.
To say the least, this ranking surprises me.