Global Times | 18-Aug-2020 | By Zhang Hui in Suzhou
European companies expand business in China, not succumbed to US pressure (part-2)
Although some German companies in Taicang had part of their business affected by the current deteriorating China-US relations, they said it’s only temporary.
Matjaz Brezigar, managing director of Mahle Electric Drives in Taicang said some of the products that were produced in China but exported to the US have been subject to high tariffs, and they may consider sending these products back to Europe and exporting them to the US from there to avoid the high tariffs. The problem is quite challenging for now, as US exportation accounts for 50 percent of their business. But as they are aiming at expanding Chinese market to have it account for about 70 percent of their business in the next five years, and the impact will be much smaller, he said.
In Taicang, such situations are not common as most German companies in China focus on the Chinese market, said Zhang Zhenwei, chairman of Taicang Roundtable, a platform linking German companies with Taicang local government. The platform has 98 German companies as its members. German companies prefer globalization and global collaboration in doing business, and will say “no” to trade protectionism, according to Zhang.
French companies in China are also increasing investment.
Jean-Marc Dugua, chief technical officer of Suzhou Hybiome Biomedical Engineering Company, a company focusing on automated immunoassay tests with its majority shares being held by a French company bioMérieux, told the Global Times the parent company will continue investment in Suzhou. Three weeks ago, the company decided to build a new bigger site near its current site. He said he had confidence in China’s economy. The company is now applying for registration in China for their new COVID-19 antibody test kits, and the test kits are expected to be exported to other Asian countries.
In the first quarter of this year, Suzhou utilized $4.23 billion of foreign investment, 163 percent higher than that in the same period last year. According to a survey by the European Chamber in June, China remains in the top three investment destinations for more than 60 percent of respondents. Joerg Wuttke, President of European Union Chamber of Commerce in China, told a press conference on August 4 that European companies remain fully confident in doing business in China and hope to be part of the story of China’s development.
Related Post: European companies expand business in China, not succumbed to US pressure