European businesses upbeat about future in China

The EU Chamber of Commerce in China has found in its latest survey that its members are generally confident in China's business environment and believe China's WTO commitment would have positive impact on the business environment.

A majority, 61 percent of the respondents predict 2005 a profit-making year. Those operating in China for more than 10 years are extremely optimistic about their business performance and their income are growing remarkably.

Last year, companies which have been in China for 5 to 10 years experienced a 42 percent increase in their turnover. Companies with 10-year presence in China had their turnover surged 34 percent. Most rapid progress has been seen in companies based outside Beijing and Shanghai.

86 percent of the chamber members are "optimistic" or "cautiously optimistic" about the overall business environment in China. Even among those which have not made profits till now 68 percent still hold positive outlook and expect to make profits within 3 years.

More than half of the members believe China is willing to fulfill its WTO commitment. But it seems that some government departments are not ready enough to do that, they say. They have identified their major problems in their operation in China as (government) transparency, intellectual property rights protection, and registration procedures.

By People's Daily Online