Survey: SW China is the Most Positive Area for European Investment

Xiao Wu in Newsvideo

By Xiao Wu, video by Xingchen Yue, iChongqing news.

Chongqing - 45% holds optimism on growth over the next two years, half expects it will take five years to see competitive neutrality realized in the Chinese market, and over one-third indicates that they have been negatively affected by the US-China trade friction, and almost no European companies benefit from the trade friction, a survey released on June 14th in Chongqing shows the confidence of the European companies in China.

The Business Confidence Survey 2019, conducted by the European Union Chamber of Commerce in China (EUCCC), shows European companies’ significant concerns on the Chinese market. Among EUCCC’s 1700 member companies, around 600 involved in various fields such as services, industries, consuming goods took part into the survey, which makes it the highest response rate in EUCCC survey participation history.

45% of the respondents hold optimism on growth over the next two years. About half of the respondents expect it will take five years to see competitive neutrality realized in the Chinese market. Over one-third of the respondents indicate that they have been negatively affected by the US-China trade friction, and almost no European companies benefit from the trade friction. Despite the mounting pressure of such uncertainties, European companies continue to see substantial revenue growth, and 62% of respondents view China as a top three destination for present and future investment. The European companies are increasing their presence in China to access local customers and compete with private Chinese companies with innovation capacity. Over two years' surveys, most European companies believe China's domestic companies are more innovative than their counterparts in Europe.

Southwest China's performance in the survey is impressive. European companies in SW China feel more equally treated than the rest of China. SW China has achieved more significant progress in Opening-up. The market threshold in this region is more favorable to foreign companies.

"SW China is the most positive area for current investment and future investment for all EUCCC members," said Mr. Paul Sives, Chairman of Southwest China Chapter of EUCCC, told iChongqing. He continued, "Local governments in SW China are very supportive in attracting new businesses. EUCCC benefits from the positive approach by the governments, especially in Chongqing and Chengdu."

Chongqing has attracted companies to relocate here to benefit from its numerous improvements in infrastructure including road transportation, rail transportation and the ability to connect from Chongqing, Sichuan into Europe through the new rail connection.

"EUCCC stands for an equal playfield in business activity. We like to see the state-owned enterprises, privately owned Chinese companies, as well as foreign investment companies, are treated in equal footing. China's new Investment law goes in some way to improving that situation," said Mr. Sives, sharing his views of China's new Foreign Investment Law.

Mr. Sives also provided suggestions on how European companies can involve more in the Belt and Road Initiative. "Participating in projects that are directly resulted from Belt and Road are difficult for European companies to access. Part of that is because not enough information is given to European member companies on what possible projects they could involve in. It could help if the local and national governments can give the foreign investment companies more information to show them where they can invest as part of the Belt and Road," suggested Mr. Sives.