By Li Jingjing
China's investment in the Netherlands is growing every year. Chinese companies are looking to set up their European operations in the Netherlands and also other European destinations. This is a positive trend for the Sino-Dutch economic relations, said Dr. Jeroen Lamers in an exclusive interview with China Economic Net recently. Lamers is the Economic and Commercial Counselor of the Embassy of Netherlands to China.
Last year marks the 40th anniversary of diplomatic relations between China and the Netherlands at ambassadorial level. The bilateral economic cooperation between the two countries has expanded significantly. Statistics also show that bilateral trade grew 21.3% year on year to reach a new high of US$68.15 billion in 2011. The Netherlands has been China's second biggest trade partner in the EU for nine consecutive years. It has also become China's second largest export destination for high-end and high-tech products.
The Netherlands is home to Europe's largest port, Rotterdam, through which a lot of Chinese goods enter the large European market. According to Dr. Lamers, apart from the country's logistic assets, its customs and tax systems are also geared towards accommodating foreign investors. Dr. Lamers thinks that the political structure, the infrastructure and the Dutch culture are the key factors that attract foreign investment. He believes that the Netherlands provides a very good investment environment.
Dr. Jeroen Lamers, the Economic and Commercial Counselor of the Embassy of Netherlands to China, was in an exclusive interview with China Economic Net recently in Beijing. [Photo: CE.cn]
MUTUAL INVESTMENT
According to Dr. Lamers, there are roughly over 350 Chinese companies in the Netherlands employing around 7000 people. And the numbers are growing steadily every year. There are both large and small Chinese companies investing in the Netherlands. In his point of view, size does matter for internationalization. Going abroad is expensive. "But if you look at the Dutch companies in China, you have big ones, but you also have small companies with very specialized skills, like language skills or knowledge of the market," he said, "I would not say it's exclusively for large companies only to invest in relatively far markets."
Dr. Lamers admitted that compared to other places in southern Europe, operating costs may be relatively high for Chinese companies. But the rens in Amsterdam are not as high as in London or Paris. "There's an advantage of being close to your market and having easy access," Dr. Lamers said, "In regards to productivities, it's expensive but you have good people who produce good value for the money you pay them. Then it may be cheaper in the long run."
Dr. Lamers suggested that Chinese companies should prepare themselves well because the business environment in Europe is different from China. Also, the companies should try to get good information and get connected to the network. His first suggestion is seeking out advice from the Netherlands Foreign Investment Agency which is a branch of the Netherlands Ministry of Economic Affairs.
The embassy published recently a survey on Dutch companies in China. "There are about 1000 Dutch companies in China. On the whole, these companies are profitable. We see continuous investment from these companies." Dr. Lamers added that large Dutch multinationals are investing quite heavily in production and also in R&D.
Dr. Lamers said that most Dutch companies think the Chinese market is becoming more and more competitive. In terms of the business climate in China, the companies feel that government relations, clarity of regulations and the access to the government are the areas that definitely have room for improvement.
SUSTAINABLE DEVELOPMENT
Chinese government has put sustainable development as one of its priorities since recent years. With centuries of efforts, the Netherlands has gained precious experience in protecting environment. Talking about cooperation between the two countries, Dr. Lamers thinks that it's important to make a connection between the economy and ecology.
"In terms of energy saving, water saving, wind energy and greenhouses, I hope the Netherlands will continue to be an advanced country. And we also continue to create new opportunities for cooperation between Chinese and Dutch firms in these fields," he said.
Dr. Lamers sees creating a good environment as an economic opportunity instead of an economic burden. And that's where the real value for the future will be.
BRICS COUNTRIES AND THE NETHERLANDS
Dr. Lamers thinks that the BRICS countries are the markets where the economic growth is. Dutch exports and imports to and from these countries are growing. According to him, the export to the BRICS countries has grown from 1% of the total in 1990 to over 4% now and it's still growing. "This is an indication which shows that the BRICS countries are also becoming more and more important for the Netherlands," he said, "A large part of our trade is concentrated within the European Union, but increasingly we see a really good growth and also the export is directed to the BRICS markets."
