(Yicai Global) July 20 -- With the further opening-up of China's industrial policies and the rapid growth of residents' spending power, now represents the best time for European enterprises to develop and invest in China, said Zhou Yuxian, a director of at China Ningbo International Corporation.
China-EU economic and trade relationships have been steadily developing over the years. The EU has been China's biggest trade partner for 14 consecutive years, and China is the EU's second-largest trade partner. Bilateral investments are also steadily growing. From January to May this year, the EU's actual investment in China was USD 2.9 billion, while China's non-financial direct investment in the EU reached USD 3 billion.
This year, China has lifted investment restrictions in many sectors, such as finance, automobile, railway operation, and power grid operation, said Zhou at a forum held by China Europe International Business School in Munich this week. He stressed that the Chinese government has shown great resolve for implementing opening-up policies on an unprecedented scale. This is good news for European entrepreneurs.
Meanwhile, China's economy has entered a new stage of development, where the original resource and labor-intensive industries gradually transforming into technology and knowledge-intensive industries. European enterprises have advantages in technologies and products, and there will be ample opportunities for development and cooperation between Chinese and European enterprises.
Zhou said that the demands of China's large middle-income population will also bring opportunities to European enterprises. "Through decades of reform and opening-up, one of the direct effects of China's overall economic growth is the skyrocketing growth and structural upgrade among residents. From 2013 to 2017, Chinese residents' disposable incomes grew at an annualized rate of 9 percent, which translated into great contributions for the global market. More importantly, China created and formed the largest middle-income population in the world, a population of more than 300 million people, accounting for over 30 percent of the global middle-income population. This will be a major highlight in global consumption growth."
CNIC is an investment company jointly founded by China's national foreign exchange reserve and the government's State-owned Assets Supervision and Administration Commission. Its registered capital is currently USD16.7 billion. The company specializes in supporting Chinese industrial investors' overseas expansion through share investment. Over the past five years, CNIC has invested in 18 projects in Europe, helping to attract European enterprises to the Chinese market.
CEIBS is dedicated to serving as a bridge for the development and exchange of economy, culture, and talent between China and Europe. Since 2012, the CEIBS Europe Forum has been held in Munich, Germany three times.
Editor: William Clegg