Danish PM's China visit aims to attract investment(2)

CHINA'S DEMAND

Boosting exports to China remains the immediate concern for Danish companies, given that the vast Chinese market has helped compensate for drop in demand for Danish goods in Denmark's traditional export destinations in Europe.

China now ranks amongst Denmark's biggest markets outside the EU, and the share of Danish exports to China and Hong Kong has risen 50 percent since 2008, the Danish Trade Ministry said. Danish exports to China were worth 15.1 billion Danish kroner (around 2.7 billion dollars) in 2011, and rose 12 percent in the first six months of 2012 alone, it added.

Thorning-Schmidt has said the sectors she will prioritize during her visit include those where Denmark has competitive edges, such as waste water management, renewable energy technologies, food safety products, and industrial design.

Moreover, Danish pharmaceutical and healthcare companies expect a big market for treatment of lifestyle and age-related diseases in China's big, rapidly ageing population.

Indeed, Danish companies could help supply China's needs as it transits to a more sustainable and green economy in accordance with its current Five-Year Plan, and as it emphasizes domestic consumption and welfare.

"That shows there are great possibilities, so Danish producers of consumers goods should really look into the Chinese market and find good Chinese partners so they can together build up a good consumer market in China," Jensen said.

BETTER MEASURES

Experts here also agreed that robust policies are needed to ensure a level playing field for foreign companies looking to invest in China.

In fact, the Chinese and Danish patent authorities signed a cooperation agreement to establish a program to quicken examination of patent applications at one patent authority, if the other has already approved it, in late August.

Jensen said to Xinhua that these measures will "make it much easier for Danish companies to register their patents in China because it will make the procedures shorter."

While such policy measures could positively impact Danish business in the long run, the diplomatic goodwill generated by Thorning-Schmidt's visit could benefit it much sooner.

"This is the eighth time a Danish prime minister visits China and it is a reflection of the importance Denmark allocates to Danish-Chinese commercial and political relations," Broedsgaard said.

"It should be remembered that good political relations will provide a good background and context for promoting the economic and commercial relationship," he added.