'Prime time' to invest in Europe

Opportune moment

"This is the best time for Chinese investors to tap into the European market," said Tong Jisheng, deputy general manager of Shanghai Construction Group.

The SCG has invested in and built several transformational projects in Europe, including the A2 road in Poland, since it entered the market in 2005.

By 2020, total investment in Europe could reach $500 billion, according to the Ministry of Foreign Affairs.

The Chinese dream, which aims to improve the nation's living standards, is also a dream that involves finding opportunities in Europe and improving the region's prospects.

During the "Go To Europe" Investment Forum recently held by the China Public Diplomacy Association in Shanghai, the European Union delegation urged China to explore the potential of Europe as a unified market and sign a comprehensive investment pact with the bloc.

"Although China has signed bilateral investment agreements with some European countries, it's not enough. We hope to establish a very comprehensive investment treaty ... to offer a unified investing environment to Chinese investors," said Michal Makocki, a representative of the EU delegation.

Trade ministers from the EU will discuss a plan by the European Commission to pursue an investment agreement with China at their meeting in Luxembourg.

China has signed bilateral investment protection agreements with several European countries, including the UK, Germany, France, Switzerland, Italy and Denmark.

"The fast growth of Chinese outbound investment will continue. Meanwhile, the field will be more diverse, and more will come from private enterprises, especially small and medium-sized companies," said Pascal Gondrand, France's investment counselor in China.

Almost 15,000 French citizens now work in France for Chinese companies. Big investors from China include Lenovo Group Ltd, ZTE Corp and Haier Group, which have established their European headquarters in Paris.

Smaller and lesser-known Chinese companies have also invested in France, with some entering the film, technology, healthcare and aviation sectors, according to Pascal.

France was China's largest investment destination in Europe in 2012, accounting for 21 percent of the total, followed by the UK and Germany, with 16 percent and 7 percent, respectively, according to the Ministry of Commerce.

"China's investment destinations are not spread equably through Europe. There's still the traditional sense of focusing on the UK, French and German markets," said Chen Xin, director of the economic section of the Chinese Academy of Social Sciences' Institute of Europe.

"We need to explore new markets. There are some fixed concepts about investing abroad, focusing on the developed financial industry in the UK, advanced manufacturing in North America, and the design and tourism fields in southern Europe.

"However, Europe is a very large area with much diversity, and that means lots of options. For example, Central and Eastern European nations offer a good entry point for China.

"They have high-quality but low-cost labor, and they provide access to the markets within the developed part of Europe," Chen added.