China is emerging as a major locomotive for global growth, with its economy tipped to expand by a robust eight per cent this year and slightly better in 2004.

The US economy remains fragile meanwhile, and that of the EU even more uncertain.

But "for the time being, European businesses' part in Chinese economic activity is very small. It is still a bit early for growth in the region to have an impact" on their results, says Jean-Noel Vieille, research director at the Aurel Leven brokerage.

Among the French firms that have a foothold in the Chinese market are the telecommunications equipment company Wavecom and smart-card makers Oberthur and Gemplus.

But aside from these "very particular cases ... the US growth on which we are counting is a much stronger factor" in judging short-term prospects for European firms, he adds.

China's rise among the global economic giants will nonetheless make itself felt soon.

"China's passage from a production zone to a consumer country will help provide fuel for the global economy," says Alain Bokobza, strategy head at Societe Generale Equity Research.

Chinese consumers will not see their buying power increase much however as long as the yuan remains undervalued owing to its indexation to the dollar.

Great disparities also exist between economically active coastal areas and underdeveloped interior regions.

"While there is definitely a new dawn in China, per capita gross domestic product remains very low," notes Huges de Montvalon, director of economic studies at Oddo Securities.

Some even insist that China is dangerous for certain western companies.