France is the first major Western country to enter into diplomatic relations and establish full partnership with China. On May 16, 1997, President Jiang and visiting French President Chirac signed the Joint Sino-French Statement, deciding to establish full partnership towards the 21st century. The statement, which laid out the overall framework for developing Sino-French relations in the new international situation, is of great importance to long-term cooperation in various fields between China and France.

The statement reviewed the international developments as the new century approaches. It is pointed out in the statement that the world toady is in profound transition from the former bipolar world to a multi-polar world. Generally, the world is moving towards easing of tension. On the other hand, many sources of tension remain. Peace and development are still the two primary challenges facing the mankind. The statement highlighted the common understanding between the two countries on major international issues. It is stressed in the statement that China and France, as permanent members of the UN Security Council, share special responsibility for international affairs and that a China that grows in strength and a united Europe will play an important role in the new multi-polar world. To deepen Sino-French relations and Asian-European relations will exert a positive impact on the global developments. The two countries decided to intensify cooperation and accelerate the process of moving the world in the multi-polar direction. They committed themselves to establishing a just and equitable new international political order and economic order and opposing any attempt to dominate international affairs so as to ensure that the world will be a more prosperous, stable, secure and balanced one. The respective positions of China and France on issued such as the reform of the United Nations, disarmament, nuclear non-proliferation, environmental protection, cracking down on drug trafficking, crime and terrorism, increasing multi-assistance, multi-trade and respect for diversity in the world were also reflected in the statement. The statement affirmed the principles guiding Sino-French exchanges and cooperation. First, both sides agreed that leaders of the two countries should meet at least once a year and the two foreign ministers should meet twice a year so as to maintain close top level contact. Second, both sides believed that as a key part of Sino-French full partnership, the bilateral trade ties should be enhanced which will facilitate the establishment of a more balanced international economic order. Both sides decided to enhance cooperation in aviation, energy, telecommunications, chemical industry, metallurgical industry, agriculture, service trade, environmental protection and job training and to further expand cultural, educational and scientific exchanges.

Recent years have seen Sino-French relations moving in the direction charted by the Joint Statement. In the political field, frequent top level exchange of visits have been conducted. In April and May, 1998, Premier Zhu Rongji and Li Ruihuan, chairman of the Chinese People's Political Consultative Conference, respectively visited France. French Prime Minister Jospin visited China in September the same year. In September, 1999, Poncelet, president of the French Senate, visited China. In October the same year, President Jiang visited France. The two foreign ministries have conducted regular consultations on important international issues to strengthen cooperation in international affairs. Economically, the bilateral trade rose from 5.572 billion dollars in 1997 to 6.03 billion dollars in 1998 and to 6.7 billion dollars in 1999, growing at an annual rate of 11.2%. Direct French investment in China also went up. By the end of 1997, there were 1272 French investment projects in China with a total contracted investment of 4.154 billion dollars, and the paid-in investment reached 1.986 billion dollars. In 1998, 200 French investment projects were undertaken in China, with 486 million dollars of contracted investment, and the paid-in investment rose to 697 million dollars. The overall French investment grew significantly in the year. In 1999, 113 French investment projects were undertaken in China. The contracted investment stood at 478 million dollars, a drop of 2.18% over the year before. The actual investment rose to 889 million dollars, registering an annual growth of 26.92%. Progress has also been made in bilateral exchanges in culture, education and science.