BEIJING, May 30 -- China and France should cooperate further in sectors like transport, energy, water treatment and recycling, the visiting French Minister of Foreign Trade said in Shanghai yesterday.

    "China is the second-largest trading partner of the European Union only after the United States," said Lagarde, who spoke to more than 100 students and teachers at the Shanghai Institute of Foreign Trade yesterday.

    She said Sino-EU trade totaled 200 billion euros (US$256.3 billion) last year and trade with France alone hits nearly 30 billion euros a year. France is the 10th-biggest foreign investor in China.

    Lagarde said she foresees more French exports, like luxury products, to China in the coming years as Chinese people's purchasing power rises.

    She reiterated both countries should team up in transport, energy, consumer goods production, water treatment and recycling projects.

    "I'm sure in the next five years, everyone of you will travel by French-made transport systems," Lagarde said.

    She mentioned Shanghai's Metro trains built by French automotive maker Alstom SA and aircraft made by Airbus SAS.

    Airbus is seeking a Chinese location to set up an assembly line for the A320 passenger jets, the only such facility outside Europe. Tianjin could be the location, said Olivier Guyonvarch, the French embassy's Beijing-based press officer.

    Nuclear energy company Areva SA, environment company Veolia SA along with many other French firms will expand their Chinese investment as opportunities arise, Lagarde, who was leading a mission of eight French foreign trade officials in Shanghai yesterday, said.

    She attended the opening ceremony of SIAL China, the international food and beverage show, yesterday morning at Shanghai New International Expo Center.

    (Source: Shanghai Daily)