The Netherlands and China have much to gain from one another

More than ever, Dutch companies are involved in the Chinese economy and Chinese enterprises are investing in the Netherlands.

More than 500 Dutch companies have set up 950 establishments in China. They are seeking opportunities not only in the economically developed coastal regions including Shanghai and Beijing but also in the rapidly developing western part of the country.

In 2012 the Netherlands was the second-largest investor among EU countries in the Chinese economy. Less well-known cities such as Chongqing, Chengdu and Qingdao will soon be rocketing in terms of growth and business potential. Moreover, over the past decade, trade relations have grown steadily, creating employment in both countries.

Exports of Dutch goods to the Chinese mainland and Hong Kong have grown significantly, from 1.5 billion euros ($2.1 billion) in 2003 to 9.5 billion euros in 2012. Exports rose in 2012 for the 14th consecutive year. China is the eighth-largest export destination for Dutch goods. China is the highest-ranking non-Western destination for Dutch exports and the strongest climber.

In 2010 more than 3,500 companies in the Netherlands exported goods to China. Dutch companies are doing well in China, foreseeing an increase in turnover (70 percent), profitability (60 percent) and investment (53 percent) in the coming years, according to one survey.

Companies in certain sectors can be considered out-performers, for example those in agro-food and trading, medical technology and real estate. Large companies have somewhat better results than small and medium-sized Dutch companies.

As for Chinese investment in the Netherlands, it is expected that the number of Chinese companies in the country (about 350) will double or even triple over the next five years. Chinese clients of the Netherlands Council for Trade Promotion (NCH) regard the Netherlands as attractive to invest in. Its function as a gateway to Europe, its strategic location, its advanced knowledge infrastructure, its talent pool, the favorable tax climate and its highly educated multilingual workforce are just a few of the many advantages the Netherlands has to offer.

Other attractive features are a Chinese community more than 100 years old and the presence of many large and medium-sized Chinese companies. NCH is well aware of what potential Chinese investors can bring in terms of future developments and welcomes Chinese businesses and investors.

These facts are well-known to Dutch business people and we embrace and are proud of the more than 350 Chinese companies in the Netherlands, a country whose infrastructure includes Europe's largest port, Rotterdam, and fourth largest airport Amsterdam Schiphol.

Transport costs for intercontinental sources through these main ports are low, and connections to other European regions by land and water are excellent. Tax incentives and a strongly skilled labor force are important, too.

To get the most from the increased collaboration with China, it is important to aim high by focusing on large projects.

Another approach would be to strengthen the collaboration between individual organizations and China. There is a need to fundamentally establish strong Chinese-Dutch collaboration that will result in a new and improved human, scientific and cultural harmony between our countries. In this regard, NCH, with the Swiss think tank Horasis, stimulates exchanges between Chinese and Dutch decision makers. NCH organizes many trade and investment missions to China and guides many Chinese companies to the Netherlands and has been successful in matchmaking between Chinese and Dutch companies.

NCH has also identified many opportunities for foreign companies and institutes in the field of knowledge transfer and innovation. Generally, closer ties on a pan-European level will bring better understanding of the opportunities in Europe.

If entrepreneurs from both countries continue to capitalize on trade and investment, the best days of Sino-Dutch economic relations are yet to come. The extensive networks of NCH, its clients and business partners, which cover almost all the main growth areas in China, are available to help Chinese and Dutch businesses team up with potential partners. China is now well on its way to realizing the Chinese dream in the decade to come.

The NCH is the largest Dutch organization for improving trade and investment with foreign countries. Its mandate is to support current and potential exporters to enter foreign markets, facilitate direct investment by Dutch companies in foreign markets and help foreign and Dutch business people to liaise with officials, knowledge centers and politicians. NCH supports companies that want to go into new foreign markets, making use of strong networks. One of these is an NCH group of more than 30 associated bilateral business councils including the China Chamber.

The author is managing director of Netherlands Council for Trade Promotion. The views do not necessarily reflect those of China Daily.

(China Daily European Weekly 03/14/2014 page13)