Investigation to more than one thousand German enterprises in China conducted at the beginning of this year by Shanghai German Foreign Trade Chamber of Commerce indicated more than 90% German enterprises planned to continuously expand investment in mainland China while the rate only stood at 80% in the last investigation six years ago.
Sueddeutsche Zeitung reported, compared with South Korean and Taiwan-invested enterprises, European enterprises face relatively less pressure of price in China owing to their obvious lower price proportion, usually only accounting for 15% to 20% of production cost.
In addition, if one foreign enterprise invests in China only for low cost but not for expanding Chinese markets, the success rate of its investment will be much lower. Investigation showed that the foreign enterprises treating China as sales markets and production base simultaneously are far more successful than those that have only one of them as its goal.
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