A 'unique gateway'

Business expert in Beijing says Belgium offers Chinese investors an ideal link to Europe

Editor's note: With Belgian King Philippe's state visit to China from June 20 to 27, Pierre Eloy, president of the Benelux Chamber of Commerce in Beijing - or BenCham - talked to China Daily about the economic links between China and Belgium as well as with the Benelux region that includes Belgium, the Netherlands and Luxembourg.

You are from Liege in Belgium, and have lived in China for 15 years.

Yes, I came first in 1993 and worked at the Belgian embassy in Beijing for one year, in the trade and commerce department. Changes have been so profound here that it feels now like a different space and time. I then came back in 2001 and managed foreign investments in Xiamen, Fujian province, in Xi'an, Shaanxi province, and Beijing. I have enjoyed firsthand experience of the evolution of China in the past two decades, from a business perspective.

What are the major achievements in economic and trade cooperation between China and Belgium in recent years?

Economic and trade relations between Belgium and China have been constantly expanding. According to the Belgian embassy in China, Belgium's exports of goods to China in 2013 reached a total value of 7.22 billion euros ($8.16 billion) and its imports from China were worth 13 billion euros. China is Belgium's sixth-most important supplier.

Belgian companies have proven to be flexible and accommodating in working with their Chinese partners. Both sides have a pragmatic way of working. Belgian companies are good at analyzing problems and formulating workable solutions. In working together with Chinese partners, one should not be patronizing but rather listen and work toward a common approach that will result in a win-win situation. The famous Belgian spirit of compromise works well here.

Companies such as Barco, BEA Electronics, CMI, Ion Beam Applications, Interel and Dewit Law have brought world-class services to China in many areas, contributing to the further development of China's economy and society.

What advantages do both sides have in the bilateral business relationship?

Although Belgium and China are very much different in size and population, they are capable of working well together. On the one hand, China is very respectful of smaller partners, while on the other hand, Belgium tends to focus on getting business done rather than trying to score political points. Moreover, Belgium is a unique gateway to the European market, which makes it an attractive destination for Chinese investors.

In what areas has the business environment in China improved and in what areas do difficulties still remain?

The investment climate in China has been constantly improving. More and more sectors are being opened up to private Chinese and foreign investment.

China has been very successful in attracting foreign investment, and therefore has become an extremely competitive market. One of the reasons is the overcapacity created in many sectors, itself caused by the abundant availability of financing and other stimuli.

For some companies, it is indeed more difficult to succeed. To have a fighting chance you need to have a unique product and healthy and creative R&D so that you can stay ahead of the competition. Understanding specific Chinese customers' needs is critical. Chinese companies have truly become leaders in innovation and they know their market very well.

Clearly, some difficulties remain in areas such as business ethics and intellectual property rights, or more generally about the enforcement of the rule of law. The Chinese authorities are well aware of these issues and are proactively fighting to solve them. At BenCham, we are optimistic that progress is continuous and happening.

As Premier Li Keqiang emphasized recently, China will provide a level playing field for domestic and foreign companies. We cannot ask for more. With a level playing field, it is up to every company to work to the best of its ability to come out on top of the competition.

In which sectors do you see new partnership potential?

The Internet and mobile communications sectors are developing very fast in China, while Belgian companies do not seem to be very active in these fields. No doubt there are also many opportunities to explore in sectors including healthcare, environmental protection, clean energy, new materials and electric vehicles.

There is an opportunity to have closer cooperation in higher education. We should promote more English-language university programs, like our neighbors in the Netherlands and Germany. This would make higher education in Belgium more attractive to Chinese students. Later, hopefully these students will also be attracted by Belgium as an investment opportunity.

What is the role of the Benelux Chamber of Commerce in promoting the China-Belgium relationship? How do you help Belgian companies invest in China?

Our Belgian embassy in Beijing is the first line of contact for Belgian businesspeople in China, and for Chinese businesspeople considering Belgium. The team led by Ambassador Michel Malherbe is professional and competent, and the regional commercial attachs are China experts.

BenCham is also a priority reference for the Benelux business community in China. Our key purpose is to facilitate networking between our members and partners. We represent, through our members, a vast amount of knowledge and expertise for those who consider an investment or plan to grow their investment in China.

BenCham is also a managing partner in the EU SME Center. The center is a project funded by the EU, delivering precious general information to Belgian and European small and medium-sized enterprises interested in China. For example, the center delivers seminars and training on exporting goods and services to China or publishes business cases and analyses of sector trends. As most of our members are SMEs, BenCham is therefore a natural partner to the EU SME Center.

In the framework of the ongoing Belgian state visit and with the support of the EU SME Center, BenCham will provide the business delegation with an in-depth seminar on June 23 on intellectual property and product liability in China.

What suggestions would you have for Chinese companies that plan to invest in Belgium?

When Chinese companies plan to invest in Belgium it is important to get good insight on the investment climate, investment funds, local regulations, tax advantages, the culture and other aspects to build up a network with authorities, our chamber of commerce and our member companies. To put it simply: do good and broad due diligence, just as it would be advised anywhere.

I would also encourage them to share experiences and learn from other Chinese companies that have invested in Belgium, exchange views with Belgian companies about how they work. As the Chinese saying goes, "knowledge begins with practice".

Just as Belgian companies investing in China should do their homework diligently to avoid disappointment, Chinese companies planning to invest in Belgium should understand our markets. Investing in Belgium is relatively easy, and the many tools made available to the Chinese investors by Belgian authorities, starting with the embassy in Beijing, and chambers of commerce, including BenCham, will guide them along the way to success.

BenCham's communication/business development manager Tal Aleshkovsky contributed to this story.

Pierre Eloy (left), president of the Benelux Chamber of Commerce in Beijing, with Belgian Ambassador to China Michel Malherbe at the Belgian embassy in Beijing on June 5. Provided to China Daily

(China Daily 06/24/2015 page7)