EU businesses downbeat over China prospects

Technology: Risk or opportunity?

Lack of intellectual property rights protection remains a key obstacle for EU investment in China. More than two thirds of European companies that engage in research and development have refrained from having an R&D centre in the country, and those with an R&D presence still tend to use their centres heavily for product localisation. "They would contribute more to the Chinese economy if they felt more secure from threats like import substitution and technology transfer attempts," said the EUCCC, hoping to use this as a leverage at a time when China is actively looking for technology to upgrade its manufacturing belt. Yet, the issue remains a dilemma for European entrepreneurs. "You have two options: build a fortress or try to run faster than them. We choose the latter," said Arkamys CEO Philippe Tour.