French minister criticises Sanofi’s $20bn US investment decision

PARIS: France’s finance minister criticised on Thursday a decision by French drugmaker Sanofi to invest at least $20 billion in the United States through to 2030, Reuters reported.

The remarks came as France aims to get more companies investing in the country rather than abroad.

“It’s clear it was not something that was nice to see and it was an unpleasant announcement,” finance minister Eric Lombard told BFM Business TV.

“It sends out a bad signal,” he also said, adding he hoped Sanofi would continue to invest in France.

The French drugmaker, one of the world’s largest vaccine makers and a leader in anti-inflammatory drugs, said on Wednesday that it planned to expand its US manufacturing capacity through direct investments in Sanofi sites, and partnerships with other domestic manufacturers.

Sanofi’s decision was the latest one from leading drugmakers, which have been expanding their US presence in response to President Donald Trump’s trade policies.

TRUMP TARIFFS

The desire to attract more investment in France is not just a simple goal. The reason? The Trump tariffs producing trade war with even the US allies have made it top priority.

Earlier in April, French President Emmanuel Macron had called for European companies to suspend planned investment in the United States after Trump announced sweeping global tariffs on American imports.

“Investments to come or investments announced in recent weeks should be suspended until things are clarified with the United States,” Macron said during a meeting with French industry representatives.

At the same time, the European Union has made it clear that they would go for retaliatory tariffs if trade talks failed with the US.

RELATIONS UPSIDE DOWN

The fact of the matter is that the aggressive policy followed by Trump is complicating the affairs continuously.

Hence, Trump has now asked tech giant Apple to stop manufacturing in India, even though India has offered a “no-tariff deal” to attract American businesses.

“I had a little problem with Tim Cook yesterday. He is building all over India. I don’t want you building in India. India can take care of itself.”

Earlier, he had stated that trade was used as carrot and stick policy to make India agree to ceasefire.

Read more: Trump asks Pakistan and India to talk trade, not nukes

Hence, Indian pro-Modi media and analysts are now very critical of Trump after he brokered a ceasefire between Pakistan and India.

This approach is a massive blow to Indian Prime Minister Narendra Modi’s ambitions. Just over a week ago, he was eyeing at becoming a global power, but Pakistan’s swift and effective response has made it an unachievable task.