A majority of Chinese companies investing in the European Union will increase investments despite the hurdles, said a survey released by the EU Chamber of Commerce in China today.
Nearly 97 percent of respondents said they plan to make future additional investments in the EU, with 82 percent planning to invest higher amounts than their current investments, according to the survey on Chinese Outbound Investment in the EU compiled jointly by the chamber, KPMG and Roland Berger Strategy Consultants.
At the same time, 78 percent of respondents reported encountering operational difficulties, mostly related to bureaucracy and high costs.
Chinese non-financial outbound investment surged 28.6 percent from a year earlier to US$77.2 billion last year, with 4,425 overseas companies operating in 141 countries and regions, according to the Ministry of Commerce. The investment figure in the EU was not immediately available but the chamber said it increased as the debt crisis made it less expensive.
"Greater Chinese investment in the EU is a positive trend and this survey clearly shows that Chinese companies face few regulatory market access barriers in Europe," said Davide Cucino, president of the European Chamber.
Thomas Rodemer, a partner of KPMG, said the survey results showed Chinese companies, primarily selling their goods and services in the EU market, are confident about their future on the continent and intend to increase their presence.
Chinese companies operating in the EU are looking to further engage in mergers and acquisitions to obtain technology, brands and expertise, the survey said.
The EU is perceived by Chinese investors as a stable environment with advanced technologies, skilled labor and a transparent legal environment.
The major impediments troubling Chinese investors included the difficulties in getting visas and work permits for Chinese employees, and problems associated with European labor laws.
Understanding the EU market was also a key concern due to the lack of uniform legislation over the region of 27 member states and 23 official languages, the survey said.
