September 25, 1:30 am | By Eric Min

EU still one of best investment targets for China

The European Union is still one of the best investment targets for China, analysts indicated at a foreign related legal and business service summit Monday.

The European Union is China’s largest outbound investment target, while Western Europe market accounts for 45.54 percent, according to the data provided by Judy Lee, Appleby’s Partner of Corporate and Commercial. Resource and energy sectors are the most attractive area for Chinese companies, she added.

“While Chinese investment is enormous, the amount is still ‘low’ compared with the potential,” said Dirk Liedtke, Managing Partner of Mummert $ Company Corporate Finance GmbH.

Taking Netherlands as an example, EU has lots of favorable policies to attract outbound investments. Guy Witich, consul of Consulate General of Kingdom of the Netherlands in Shanghai, indicated the advantages of its country’s investment environment as following points:

1. Logistics
Netherlands has the world’s largest port Rotterdam, while about 40 percent Chinese exporters take the country as a base. The World Economic Forum indicates Netherlands has the best logistics environment all over the world. The country has 133 air routes from 10 Chinese cities.

2. Operation cost
According to the data provided by KPMG, Netherlands has the lowest operation cost in Europe.

3. Tax policy
While the official enterprise income tax is 25 percent, the actual tax is 10 percent, which very low. Thus, big companies like IKEA, Carrefour and Midea take the Netherlands as their financial headquarters. Forty Chinese firms set this financial headquarters as well, including Huawei, which moves from Hong Kong.

4. Talents
Netherlands has enormous world-class companies, such as Shell, Philips and Unilever, which could train excellent talents for investments, especially in the areas of high-tech and chemical industry.

5. Language competitiveness
Dutch have the best English proficiency in Continental Europe, while lots of them can speak German and French.

There are 50 new Chinese companies settled down in Netherlands this year, while the total number is 322. Medium-sized enterprises take a big percentage of them, Witich add.