By Mr. Li Fei, Economic
China and Europe started doing business with each other more than 2000 years ago. Silk made in China travelled over 6500 km through the vast land of Eurasia on camel back, to arrive at the hands of European admirers. Hence came the name of Silk Road. Four centuries ago, direct trade links between China and the Netherlands was established when the first Dutch ships arrived in China through the maritime Silk Road, and brought tea, porcelain and silk back to Europe. Silk Road has represented the spirit of cooperation, openness and mutual benefit.
After many centuries, trade and economic exchanges between China and the Netherlands has become ever more prosperous. In 2015, bilateral trade reached 68 billion US dollars, ranking top 3 among European countries. Every day, hundreds of thousands of containers arrive at the Rotterdam port or the Schipol airport with toys or smart phones, and leave for China with chemicals or machinery.
In 2015, Chinese companies invested 3.6 billion US dollars in the Netherlands in the form of non-financial direct investment. This figure accounts for half of China’s FDI in the EU in 2015. Presence of Chinese companies can now be found in a wide spectrum of sectors, from agriculture to logistics, from financial services to high-tech. Their investment has created decent jobs for local communities, offered quality products and services for Dutch consumers, and brought new vigor to the economy of the Netherlands.
Such achievements in bilateral exchanges do not come as a surprise. On one hand, the Netherlands is one the most open economies in the world. With its strong competitiveness in multiple industries and strategic position as the gateway to Europe, the Netherlands has always been among the most prominent traders and investors in the world.
On the other hand, China, after many decades of remarkable growth, has become the world’s second largest economy, the biggest trader and No. 3 investor. In 2015, China’s GDP growth contributed over 25% to the world’s economic growth. Its total trade accounted for over 13% of the global trade, and FDI inflow and outflow both exceeded 100 billion USD.
We are fully confident that China will continue to be a most important player in global trade and economy in the years to come. From the demand side, China has a huge market with unfathomable potential. As is widely known, China boasts the largest population in the world. Something not so widely known is that, China’s middle class has overtaken the US as the world’s largest and has been growing much faster, as revealed in a study by Credit Suisse. As the Chinese people gets richer, their immense consumption power is manifested in amazing numbers. For example, according to incomplete statistics, in 2015 Chinese tourists spent over 230 billion USD on traveling overseas, and at least half of the spending is on shopping.
From the supply side, China has what it needs to further boost competitiveness, and will do what it takes. China has a comprehensive industrial chain and a large pool of highly educated talents, which provide a wonderful platform for innovative companies to try out new ideas and scale up production capacity quickly. For instance, DJI, a technology company founded in 2006 and headquartered in Shenzhen, is now at the forefront of the civilian-drone industry. With advanced technology in flight control and cradle head, DJI’s products have dominated the global market with 70% market share. The Chinese government is also making every effort to create a better business climate through deepening reform. For example, the Shanghai Free Trade Zone was launched in 2013, followed by three more free trade zones in 2015. Bold measures of streamlining administration and liberalizing market are first tested in the free trade zones, and then rolled out all around the country.
We believe that the development of China will bring tremendous business opportunities for our partners all over the world, and thus bring better lives to their peoples. This is why China proposed the “Belt and Road” initiative – to carry on the spirit of cooperation, openness and mutual benefit. By connecting infrastructure and development strategies of countries along the “Belt and Road”, and by stepping up bilateral and regional cooperation, the time-honored Silk Road will upgrade into a highway for the exchanges of goods, services, technology, culture and friendship between East and West, and will be exuberant with new vitality.
The Netherlands is well-known as an open and pragmatic country, and always stands for free trade. China will maintain steady and healthy economic growth as it continues to deepen reform. As the two ends of “Belt and Road”, the Netherlands and China have huge cooperation potential. Now it is high time for us to work even closer together, to usher in a new golden age in the 21 century.
Embassy of the People’s Republic of China http://nl.china-embassy.org/eng/
Photography by Mr. Kang Yin, Second Secretary, Embassy of the People’s Republic China.
