“2012 Business Confidence Survey of EU Chamber of Commerce in China”: 60% of European Enterprises to Plan Further Investments in China

The “2012 Business Confidence Survey of European Union Chamber of Commerce in China” published by EU Chamber of Commerce in China indicates over 20% of the member enterprises consider transferring their investments to other economies. For the long term, enterprises are confident that the economy of the Euro zone will finally leave the crisis behind and smoothly grow. Yet they remain a question mark regarding when is the time for the end of the crisis.

The survey also points out that as the biggest contributor to the current global economic growth, China has exhibited its importance to the EU enterprises to a record high extent. More than half of the enterprises involved in the questionnaire survey expressed that the income brought by China market has exceeded 10% of the total global income of the enterprises. This figure increased 50% compared to 2009. Besides, 64% of the interviewed enterprises said their profit before tax has certain growth in 2011. Most EU enterprises in China still remain a positive attitude toward the economic outlook for China. 

The survey manifests 63% of the enterprises plan further investments in China in the future 2 years while 71% position China as one of their top three investing targets. Among the enterprises involved in the questionnaire survey, 22% admit they’re considering transferring their investments from China to other economies and the main factors are due to cost and supervising environment. With the rise of cost and stagnancy of reformation, the former direct investments in China will be slowed down and the planning investments could be transferred to other emerging markets.   

During the time when the European enterprises are “in a dilemma” because of the rise of China labor cost, some enterprises showed great interest in transferring to the inland areas in the east and west of China. However, Piter de Jong, European Union Chamber Shanghai Chairman, stated that “If manufacturing, processing, and exporting enterprises move their production lines to the inland, the initial problem for them will be the cost rise due to the logistics; therefore, developing the logistics network in the central and west areas is the important step to attract foreign investments.”