A China-EU trade and investment expo in Chengdu beckoned people to visit. Provided to China Daily

European business leaders upbeat about Chinese economy 

Though European business leaders and experts hold different views on China's recent twists in the stock market and its currency depreciation, they are upbeat about the country's growth outlook, saying that it will still contribute to the global economy.

"In the short run, it is likely that the pains of economic transition will continue to be felt. This will likely mean slower growth. But, depending on policy decisions, it could mean better and more sustainable growth for the future," says Markus Beyrer, director-general of Business Europe, which is based in Brussels and is a network of leading European companies.

Though Beyrer is still confident about China's economic outlook, he says the recent economic upheaval has shown that the economic model of export-led growth is no longer sufficient to generate long-term growth in China.

"The current leadership tacitly acknowledged this when announcing its reform plans in late 2012. China should commit to deeper reform in order to move toward consumption and investment-led growth and in order to retain the confidence of European business in China as a market with valuable business opportunities," says Beyrer. "The recent economic developments only serve to underline the importance of speeding up reform."

While China is experiencing a period of economic slowdown, Beyrer says it is still an interesting place for European companies to do business but that growth figures alone are not enough to attract and maintain European business and investment.

Steven Verhasselt, director of Liege Airport's Asia representative office, says the shocks of the market are short-term movements, while the long-term direction is still upward. In a way, he says, it makes sense that the market is unable to continue generating 10 percent annual growth rates, as the challenge to hit 10 percent becomes bigger every year.

"The growth rate of 6 or 7 percent is still among the highest of industrialized countries, and domestic consumption is growing. I am confident in the Chinese economy and the Chinese investment climate," says Verhasselt.

For Europe, Verhasselt says China is now also becoming an export market.

"From the airport's point of view, the loads to and from China are now balanced in Liege, while that was completely different only five years ago," says Verhasselt.

He says at that time, cargo flights arrived full from China, but departed with very low payloads or even empty. That is changing as the demand in China rises for European products.

"Europeans should work a lot harder to adapt to the requirements of the Chinese market, so the trade balance between China and Europe can equalize slowly but steadily," he says.

In the near future, Verhasselt says there will be some difficulties in adapting to the new reality of single digit annual growth, which will have an impact on the trade balance, the yuan and the stock market.

"In the long term, I believe that any growth rate above 5 percent is enough to keep China in the driving seat of the global economy," he says.

"Planes will depart in China full, freighters with products and passenger planes with outbound tourists. We are happy to receive them in Liege."