Proposed business council in EU has a vital role to play

The rapid rise of Chinese investment in Europe has renewed interest in Beijing setting up a high-level business council in Brussels, the European Union headquarters. This initiative was given the go-ahead by Vice-Premier Ma Kai during his recent his visit to Brussels.

Large-scale Chinese investment in Europe and elsewhere is a relatively new phenomenon. However, China's entry into World Trade Organization in 2001 opened a new page as Chinese companies were encouraged to look outward. Since the 2008/09 global financial and the EU sovereign debt crises that pace has quickened. Given China's growth prospects in the coming decades and the size of its population, its overseas investments are just beginning and will take years to peak.

Against such a background, Ma's announcement offers a way of better facilitating investment flows. To achieve that, Chinese businesses need to learn more about the economic policies of Brussels, whose status is second only to Washington in the West.