French companies have established a strong foothold in the U.S. high-tech sector, particularly in defense, security, health, and biometrics, with direct investments reaching $370 billion in 2023. This investment surpasses American investments in France, which totaled $142.1 billion. Over 4,200 French subsidiaries in the U.S. employ around 741,000 people. The manufacturing sector accounts for over half of these investments, significantly contributing to local job creation and facilitating American exports.
French Companies Thrive in the U.S. High-Tech Sector
According to insights from the General Directorate of the Treasury, French enterprises have long been a formidable presence in the United States, particularly within high-tech sectors such as defense, security, health, and biometrics. Each year, France channels several hundred billion dollars into the U.S. economy, positioning it as the fifth largest foreign investor and generating hundreds of thousands of jobs across numerous subsidiaries. This significant economic influence prompted President Emmanuel Macron to urge French companies to reconsider their investments in the U.S. on April 3.
Interestingly, France’s investment in the U.S. surpasses the investment made by Americans in France. In 2023, French direct investments in the U.S. reached a remarkable 370 billion dollars, solidifying France’s status as the third largest European investor and fifth largest foreign investor overall in the United States, based on data from the U.S. Bureau of Economic Analysis (BEA). In stark contrast, the United States invested 142.1 billion dollars in France in 2023, making it the leading foreign investor in the French market, according to the Bank of France.
The Business France 2024 report reveals that American entities initiated 252 investment projects in France last year, representing 15% of all foreign projects welcomed within the Hexagon.
According to information shared with AFP by the American Chamber of Commerce in France (AmCham), over 4,200 French company subsidiaries are currently operational in the United States. These subsidiaries provided employment for approximately 741,000 individuals in 2021, as per the latest available data from the BEA.
Key Sectors: Defense, Security, and Health
A report from the General Directorate of the Treasury highlights that the manufacturing sector constitutes more than half of French direct investments in the U.S., contributing to over 200,000 jobs locally.
The DGT further emphasizes that “French companies have historically been very present in the United States”, especially in high-tech domains tied to defense, security, health, and biometrics.
Among the significant investments from France to the U.S., French companies supported research and development (R&D) with an impressive 5.1 billion dollars in 2021, according to the BEA. These subsidiaries also facilitate American exports, with 27 billion dollars in goods exported from American soil by French company subsidiaries.
In comparison, the 4,600 American firms operating in France employed over 480,000 people in 2021, according to Insee. The 252 American projects launched in 2024 alone created more than 7,200 jobs.
Prior to the imposition of new customs duties by Donald Trump, several French corporations had announced substantial investments in the U.S. For example, shipping giant CMA CGM disclosed plans to invest 20 billion dollars over four years, while Schneider Electric aims to invest over 700 million dollars by 2027.