Continent able to cash in on nation's urban growth: Experts

The policy agenda set at last weekend's Central Economic Work Conference will not only benefit China, but bring opportunities for European businesses, accord ing to experts.

"It is a positive sign that China is going to shift toward a more domestic consumption-oriented growth model," said Francoise Nicolas, senior economist and director of the Center for Asian Studies at the French Institute of International Relations.

China can no longer achieve a relatively higher rate of growth based on exports and investment, she said.

"That type of growth strategy is over and you have to change gears. The Chinese leaders are very well aware of the problem," Nicolas said.

"If the government takes major efforts to expand the Chinese market and to genuinely further open the market, it will be extremely positive for French and European firms."

Antoine Doyon, associate director of consultancy Arthur D. Little, said that while China pays more attention to increasing domestic demand, private and foreign companies will benefit.

He said service sectors such as fast-moving consumer goods, logistics, IT outsourcing, and industry sectors with high technology content and added value will bring opportunities for foreign investors, while capital-intensive and labor-intensive sectors will not fare as well.

To benefit from a consumption-driven service-based economy, "foreign companies will need to re-examine their unique selling propositions and pay extra attention to product and service features that Chinese consumers will like, " he said.

Local capabilities and local research and development footprints will become increasingly important, Doyon added.

Urbanization is highlighted in the government agenda, and is seen a new engine for economic growth. Experts say this is also a sector that many European businesses can benefit from.

Duncan Freeman, research fellow at the Brussels Institute of Contemporary China Studies, said the focus on urbanization and the quality of urbanization means products and services typically used by well-off urban consumers will be increasingly in demand.

Francois Godement, professor at the Paris Institute of Political Studies, said: "From a French or European point of view, the accent on urbanization is welcome because this is an area where we have much expertise and engineering to offer - if the market is open."

He said France and Europe are looking for more measures to open access to China's public markets, to allow investment in services and finance, and to bring equality in credit conditions for public and private firms, including foreign companies.

At the conference, it was stated that ecological principles should be integrated in the urbanization process, which should be environmentally friendly.

Janez Potocnik, European commissioner for the environment, said the emphasis on environmental protection will bring tremendous economic opportunities for European businesses.

He said the vision of Europe and China is very similar when it comes to the importance of environmental issues. Europe also has a growth strategy, with Europeans wanting the European Union to become a smart, sustainable and inclusive economy.

"Like the EU's blueprint, China's strategy places emphasis on very similar aspirations of improving efficiency by using natural resources, including energy, and introducing new targets for the reduction of key pollutants," he said.

Fu Jing in Brussels contributed to this story.

Contact the writers at lixiang@chinadaily.com.cn and diaoying@chinadaily.com.cn.

 

Sino-Europe business relations:

China's success of core interest to Europe: EU leader

More investment to boost Chinese economy next year

'Now is time to invest in northern Europe'

China vows to strengthen co-op with Europe