Chinese President Xi Jinping does have a 'dream', but it appears to differ from the EU companies' expectations. China will soon become the largest economy in the world, yet EU companies operating there are increasingly pessimistic about their prospects. This paradox will loom over the upcoming annual EU-China summit, to be held on 29 June in Brussels, where the leaders will celebrate with fanfare forty years of diplomatic relations. Prime Minister Li Keqiang will intensify Beijing’s investment offensive in Europe…
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.
