EU ‘better than North America’ for China firms

Chinese firms consider the European Union as good or better an investment destination than North America, the EU chamber of commerce in China said on Thursday, despite the euro zone’s debt crisis and recessionary woes.

Even more preferred to put money into the European Union than nearby Southeast Asia, where some countries have significant Chinese minorities.

The European Union “is perceived as welcoming to foreign investment; with few market access barriers and little history of opposition to Chinese investment on national security grounds”, the report said.

The survey of 74 Chinese companies that have already established themselves in the European Union found 33 per cent considered it more favourable for investment than North America, with 45 per cent saying it was the same and 21 per cent less favourable.

Compared to Southeast Asia, 48 per cent said the European Union was more favourable and 28 per cent less favourable, with 24 per cent seeing them as the same.

But the report added that according to Chinese government data just five per cent of Chinese overseas investment went to Europe in the 2004-2010 period.

“This would mean that mainland Chinese investments only counted for 1.4 per cent of total ODI (outward direct investment) into the EU in 2011, whereas the EU accounts for around 20 per cent of investment into China,” it said.