In recent one or two years, in the face of rising cost pressures, some Korea-invested enterprises evacuated from China. However, the majority of European companies are not anxious to withdraw. In early time of this year, German Foreign Trade Chamber of Commerce in Shanghai made a survey on 1,000 German enterprises in China and concluded that more than 90% of German companies were ready to expand investment in mainland China continuously in the near future, while the ratio of six years ago was 80%.
It was reported by Süddeutsche Zeitung in Germany that European companies were also complaining about the pressure of cost increases. But compared with South Korea or Taiwan-invested competitors, the European business in China was facing relatively small price pressure because of the obviously low proportion of the wages, which often account for only 15% to 20% in the production cost.
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