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2006-09-06 | All chapters

EU Firms Confident about China
CCTV9's website, 6th September 2006

A survey released on Tuesday shows that most European firms operating in China are making profits and the survey participants are optimistic about the market outlook. Many of them are investing in poorer inland parts of the country.

The European Union Chamber of Commerce in China, presenting its 2006/07 Position Paper, said its annual poll of member firms found 83 percent of respondents expect to be profitable this year, up from 61 percent in last year's survey. 7 percent of the firms expect to generate a loss in 2006, down from 23 percent in 2005, but 71 percent of those in the red expect to be profitable within three years. The survey showed 57 percent of respondents were based in Shanghai, Beijing and Guangzhou in 2005, down from 71 percent in 2004, indicating that EU companies are now starting to invest in the relatively less developed areas of China which offer new markets as well as lower labor costs.

Click here to view this article on CCTV9's website.