Belgium has lots of business synergies that Chinese companies can tap, says top businessman

A leading European busineesman describes Chinese President Xi Jinping's current visit to Europe is a "milestone".

"We are delighted that Xi is visiting Belgium and hope his visit will be a complete success, marking another milestone in the development of fruitful bilateral relations," Bert De Graeve, chairman of Flanders-China Chamber of Commerce, says in an interview with China Daily.

The FCCC aims to bring Flemish and Chinese partners into contact with each other through information and interaction and by supporting projects in cooperation with government and other public authorities.

Kris Peeters, Minister-President of the Flemish government, has called the private institution "our spearhead for China".

De Graeve, who is also CEO of Brussels-based Bekaert, a global market and technology leader in steel wire transformation and coatings, says economic and trade relations between Belgium and China have been constantly expanding.

"Belgian, and especially Flemish companies, are very flexible and very accommodating in working with Chinese partners," De Graeve says. "Both sides have a pragmatic way of working. Our companies are good at analyzing problems and formulating workable solutions.

"In working with Chinese partners one should not be patronizing but rather listen and work toward a common approach which will produce a result favorable to all concerned."

Belgian companies, such as Bekaert, Barco, Agfa, Umicore and Picanol have brought world-class technology to China for many areas, contributing to the further development of China's economy and society."

Although the countries are very different in size and population, he believes they are capable of working very well together because China is "very respectful" of smaller partners. Belgium tends to focus on "getting business done" rather than trying to score political points, which he says is the case with larger countries and which has sometimes hampered the smooth development of bilateral relations. "Moreover, Belgium has unique access to the European market."

De Graeve says China's investment climate and business environment is "constantly" improving with more and more sectors being opened up to private and foreign investment.

"Of course, China is a very competitive market as all of the world's companies worth their mettle in their sector are trying to grab a piece of the Chinese market. There is also a problem of overcapacity in many sectors, often caused by the abundant availability of financing and other stimuli."

Some companies might find it difficult to succeed, but to have a "fighting chance" they need to have a unique product, continue innovating by investing in R&D, and keep ahead of the competition by listening to customers.

Some difficulties remain, such as corruption and the enforcement of intellectual property rights, cautions De Graeve, but the Chinese authorities are aware of those issues and are trying to solve them.

"As Premier Li Keqiang has emphasized, China will provide a level playing field for domestic and foreign companies. We cannot ask for more. With a level playing field it is up to every company to work to the best of its ability to come out on top of the competition. However, missed business opportunities owing to market access and regulatory barriers have been reported by half of all European companies doing business in China."

There is, though, potential for improved partnership in the Internet and mobile communications sectors which, he points out, are advancing very fast in China but lagging in Belgium.

There are many other opportunities to explore in healthcare, environmental protection, clean energy, new materials and electric vehicles, De Graeve says. Closer cooperation in higher education is also a possibility, and he would like the Belgians to promote more English-language courses, which would make higher education in Belgium more accessible to Chinese students.

The FCCC, which is based in Gent, aims to assist Belgian companies doing business in China and support Chinese companies wanting to invest in Belgium.

It does this, he says, through the exchange of knowledge, experience and the network it has established in China. The chamber serves as a "powerful" information platform while giving Chinese delegations an opportunity to meet its members and relevant Belgian authorities. That way, the Chinese can also learn about the opportunities Flanders offers as a "dynamic" region at the very heart of Europe.

"We will continue to do this with the support of the Flemish government and in conjunction with the Belgian federal government," De Graeve says.

To make it more convenient for businesspeople in Belgium to get reliable business news from China the FCCC e-mails weekly newsletters to its members. It also strives to encourage Belgian companies to invest in China by publicizing positive stories about those who have gone before them.

It has already published two volumes of "FCCC Members' Portraits in China" to show newcomers how obstacles have been overcome and success achieved step by step. It also regularly organizes conferences and briefings on topics that companies need to know when they invest in China.

De Graeve says Belgian companies can further benefit from activities organised on a European level, as the FCCC is the secretariat general of the EU-China Business Association.

So, what suggestions does this go-ahead entrepreneur have for the Chinese companies that plan to invest in Belgium?

"When Chinese companies plan to invest in Belgium it is important to get a good insight on the investment climate, investment funds, the local regulations, tax advantages, the culture etc, to build up a network with authorities, the chambers of commerce and local companies."

China Daily

(China Daily European Weekly 03/28/2014 page9)