Chinese firms get good deals in Europe

In an effort to attract foreign investment and boost jobs, several European nations including Denmark, the United Kingdom and Belgium have rolled out a favorable policy package for Chinese private investors.

It includes a waiver on office rent for the first year, consultation on legal, financial and policy issues and language support, announced Danish Trade and Finance Minister Pia Olsen Dyh on Saturday.

"Our government has an ambitious vision to create favorable conditions for foreign business. We know attracting business is the key to creating jobs and staying competitive," Dyh said.

Dyh drew attention to Denmark's strong foothold in design and innovation, life science and "green" technology. These are also the areas in which it wants to cooperate with China.

For example, China National Renewable Energy Center, the country's first renewable-energy think tank, launched last Thursday, is a joint program with Denmark, which donated 100 million krone ($17.9 million) and technology support to China.

"The Danish economy transformed successfully from oil-reliance to green. I see the same trend going on in China, and I think that transition is something that we can help with," Dyh said.

On February 10, BGI, a Shenzhen-based genome research institution, set up its Europe research center in Denmark. The 170 million krone joint venture was established in Denmark because of its edge in life science, according to Dyh.

Last December, around 25 private investors, led by Chinese consumer electronics company aigo's chairman Feng Jun, traveled to Europe to explore European nations' investment environment.

Aigo is the trade name of Chinese consumer electronics company Beijing Huaqi Information Digital Technology Co Ltd.

The visit was aimed at finding a "top investment destination". The United Kingdom and Denmark were placed second and third. The top position went to Belgium.

A simple procedure for establishing a business, no restrictions on repatriating revenues to parent countries, an educated workforce, a low tax rate and cheap property rents were cited as reasons for Belgium's predominance, said Armand De Decke, president of the Belgian senate.

Denmark and Belgium are relatively little affected by the current eurozone debt woes.

Feng Jun said his team was "warmly welcomed" by the countries they visited. Princes and prime ministers of both countries held talks with them.

Feng said this is the result of a "cluster" effect. "If investors go for foreign companies one by one, it is exhausting. But if we come together, they will not dislike us. Instead, they welcome us," he said.

This is the idea behind aigo Entrepreneur Alliance (AEA), a club of around 500 private-owned Chinese companies. Members of the alliance include leading companies within different industries such as electronics, maritime, real estate and clothes. The air conditioner manufacturer Gree, the solar equipment maker Himin and Huiyuan Juice are among them.

The alliance possessed bargaining power. At first, Belgian authorities refused to offer rent exemption for the first year to these firms but the Chinese investors told them Britain and Denmark had offered that condition.

One example Feng likes to cite is Sony. PS2, a Japanese video game console manufacturer that found their products difficult to sell, came to Sony for help. Sony helped them and the PS2 turned out to be a market sensation. The company subsequently became a member of the Sony consortium.

"China's companies have to go abroad as the economy grows. We will find much more favorable conditions if we cling together instead of going it alone," Feng said.