Danish Investments In China
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Distribution of Danish Investments in China – by Sector: |
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Not surprisingly, the majority of Danish companies in China are operating with industrial
hardware products. Chinas reputation as the "Factory of the World" has
attracted many manufacturers looking to save costs on processing of standard materials
such as steel, aluminum and plastics.
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Table 1 |
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Sector |
% |
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Industrial machinery and equipment
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25
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Food and agriculture
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16
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Service
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15
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Shipping and logistics
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12
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Building materials and furniture's
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12
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Electronics
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10
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Energy and environment
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8
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Textiles
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7
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Pharmaceuticals
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6
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General trading
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4
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Source: Danish Trade Council China |
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NB! Respondents were asked to indicate at least one but maximum two sectors in which
they have operations in China. Therefore, the accumulated per cent figure is higher
than 100%
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Distribution of Danish Investments in China – by Business Objective: |
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Two thirds of Danish companies list sales as their main objective in China. Two
thirds of companies are also using China as a production base, either through own
manufacturing facilities (off-shoring), outsourcing of production functions to Chinese
suppliers, or simply by sourcing basic components and raw materials.
10% of companies also carry out research and development in China. This figure is
likely to increase significantly in the future as Danish companies are integrating
China even further in global supply chain activities.
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Table 2 |
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Function |
Per cent of companies |
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Sales
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65
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Production at own plant
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33
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Services
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31
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Basic sourcing
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22
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R&D
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10
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Outsourcing
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10
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Source: Danish Trade Council China
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NB! Respondents were asked to indicate at least one but maximum three functions.
Therefore, the accumulated per cent figure is higher than 100%
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Distribution of Danish Investments in China – by Location: |
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Geographically, one third of Danish company headquarters in China are located in
Eastern China (incl. Shanghai and Suzhou), while Northern China (incl. Beijing)
and Hong Kong have one fourth each. The remaining 11 % of Danish companies have
placed their headquarters in Southern China.
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Source: Danish Trade Council China |
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Trend for Danish Investments In China: |
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The latest survey on Danish FDIs to China indicates that the investment rate for
Danish companies in China is likely to continue for the next several years. New
investors are coming to China in a steady stream, while companies that are already
established in China are expanding business activities by expanding current capacity
and investing in new facilities.
As chart 2 illustrates, China is the first priority for 28 percent of Danish companies
global investment plans, and for 52 percent a top-three priority.
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Source: Danish Trade Council China
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