European companies expand business in China, not succumbed to US pressure

The view of Suzhou Industrial Park (VCG)
The view of Suzhou Industrial Park (VCG)

Global Times | 18-Aug-2020 | By Zhang Hui in Suzhou

Many European companies in China that emphasize global collaboration are deciding to further tap into the Chinese market and expand their investment in China in spite of repeated US attempts to build an European alliance against China.
European company representatives said the US is containing China out of fears China may threaten its dominant position in the world, but that European businesses will not succumb to US pressure or play the US’ political game. Representatives of several German companies in Taicang, Suzhou, East China’s Jiangsu Province – dubbed the Chinese town for German enterprises – told the Global Times they would not follow American companies to move their production out of the Chinese mainland, and instead would strengthen their business partnership with Chinese counterparts as they highly value China’s huge market and promising economy.

Emin Guemues, division manager of Kern-Liebers Taicang company, the first German company established in Taicang in 1993, said what the US is doing in Europe is “stupid,” as European companies, especially German companies will not listen to the Trump administration. “As an automotive company, we value markets and China has a huge automobile market compared with the US and Europe. China produces around 25 million cars each year, while Europe only produces 5 million,” he said. The company supplies to global automotive, textile and consumer goods industries and it is building a new factory in Taicang as part of its long-term development strategy for the next 10 years.

He said Germany companies will not move out of Chinese market, as the huge Chinese market offers jobs amid economic downturn in Europe.  “People in Europe need jobs to support their family, and we see opportunities in China,” he said. He mentioned the motive behind the US political game is that it is worried that China’s growing strength would threaten its position as the world’s leading superpower. The US has constantly attacked China on issues like COVID-19, but the results of China’s COVID-19 response in contrast with the US response has been clear for the world, he said.

In the future, more countries will get stronger, and a world with only one superpower will not work, Guemues said.

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