| The French aerospace and aviation industry is seeking further cooperation with its Chinese counterparts, especially in the case of French small-and medium-sized enterprises (SMEs). Charles Edelstenne, chairman of French Aerospace Industries Association (GIFAS), made the remarks yesterday at the Aviation Expo/China 2005 in Beijing. "The global partnerships between China and large companies, such as EADS (European Aeronautic Defence and Space), Airbus and Eurocopter, have already begun and developed well. Now we want to extend it to SMEs," Edelstenne said. Edelstenne said his association is trying to introduce the French SMEs' products and services to China, as well as make them aware of what the Chinese aviation industry needs. More than 50 French companies participated in the four-day exhibition that began yesterday. The French exhibitors include large companies, such as EADS, Eurocopter, Safran, Dassault Aviation, and a large number of SMEs. "This strong presence is driven by our will to promote dialogue and cooperation at the highest level and it reflects GIFAS' strategy of holding regular meetings with Chinese manufacturers," Edelstenne said. "Our presence at the exhibition will not only result in new opportunities for joint product design and development, but also increase the volume of subcontracted work in China and the value of the work offered to Chinese manufacturers, to ensure that they derive even greater benefits from it," Edelstenne added. The chairman said the opportunities for further Sino-French cooperation exists in three major sectors - commercial aviation, helicopters and aerospace. He also said cooperation could be carried out in three areas, namely research and development, systems and equipment manufacturing, and maintenance. "Our will to share expertise and risk, investments and research, as well as the production chain, with a view to mutually reaping the benefits, is the message we convey to major manufacturers worldwide and particularly to those in China," Edelstenne said. "The relationship between us must be such that both countries win. It cannot be otherwise." He said that the French aerospace and aviation industry, a market leader in Europe and second largest worldwide, is attracted by the huge Chinese market potential as well as the country's low labor costs. But he also added that the Sino-French partnership goes beyond that. "We can improve our existing technologies together," he said. "France is always looking for new technologies. Technology is something that moves every day. Once we cooperate, we can upgrade our levels together." GIVAS held a round table discussion on the eve of the trade show with Jin Zhuanglong, vice-minister of Commission of Science Technology and Industry For National Defence, as well as representatives from China Aviation Industry Corp I (AVIC I), AVIC II and the General Administration of Civil Aviation of China. Edelstenne said GIFAS is considering making the high-level meeting a regular fixture in order to explore the topics the two countries are talking about in more detail. Existing industrial partnerships between the two countries include the decision by Airbus to offer AVIC I and AVIC II a 5 per cent work share in the A350 programme. Eurocopter and AVIC II have already produced 400 EC120 helicopters and have signed a co-operation agreement to develop a new multirole helicopter. Air France Industries, an MRO (maintenance, repair and overhaul) supplier, has set up a joint venture in Guangzhou, South China's Guangdong Province. China also participates in the European satellite navigation system Galileo. | 
