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German Enterprises Still Like to Invest in China
2008-07-02 09:27:01

According to the investigation of thousands of China-based German enterprises, more than 90% of Germany-invested enterprises prepare to expand investment in Chinese mainland while 6 years ago, the percentage in the same kind of investigation was only 80%. It was known that European enterprises face comparatively less price pressure in Chinese mainland due to obviously low salary proportion, generally accounting for15% to 20% of production cost. Though labor cost of Chinese mainland is rising, it presently still takes up less than 20% of European average salary. So it is far cry from the turning point of shifting back especially for China-based European enterprises with high technology content. With the improvement of industry level in Chinese mainland, part of overseas capital enterprises migrate outside and domestic enterprises regain part of market shares. However, in the coming quite long time, it is still the mainstream for European enterprises to invest and set up plants in China.

 

 

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