EU eyes booming W China embracing new round of development

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The Enterprise Europe Network (EEN) established the EEN Western Center in China in Chengdu, capital city of southwest China's Sichuan Province, during the EU-China Business and Technology Cooperation Fair on Wednesday.

Approved by the European Commission, the center is expected to facilitate cooperation among enterprises in Europe and China's booming western regions, said Philippe Vialatte, head of the Science, Technology and Environment Section with the Delegation of the European Union in China.

The EEN Western Center in China aims to improve the technology transfer and innovation among European countries and China to facilitate cooperation in the market, capital, products, new technology and human resources sectors, he said.

EEN is a global service platform designed to support small and medium enterprises (SMEs), especially in benefiting from the internal market and accessing international markets. It brings together business support organizations from 49 countries with more than 580 member organizations.

Go west in China

The backbone of Europe, SMEs provide about 75 million jobs, or 90 percent of jobs, in Europe. Exploring the Chinese market could offer more development opportunities for them, said Hussein Sattaf, head of the Governance and Training department of the EEN, Executive Agency for Competitiveness and Innovation (EACI) of the European Commission.

"The EEN Western Center in China will tightly link Chinese and European enterprises in the Sino-European tech-cooperation fields, which has great potential," he said.

China initiated a new round of western development strategy in 2011 to boost its less-developed regions, which includes six provinces, five autonomous regions and Chongqing Municipality, and account for more than 70 percent of the Chinese mainland's land space.

The central government prioritized the new round of its "Go West" strategy in the country's new five-year plan, offering preferential policies supporting continuous development in the western regions.

Convincing prospects

China's burgeoning west has attracted international enterprises by taking fast steps to subordinate markets.

Siemens signed an investment agreement with western China's Chengdu High-Tech Development Zone on Monday to set up a world-leading manufacturing and research and development base for industrial automation products in Chengdu. It will be the third such base for Siemens.

"Sichuan is becoming more strategically important in Siemens' global layout. Leveraging our comprehensive, innovative and environmental concept and technologies, Siemens will continue to actively participate in Sichuan's economic and social development," said Mei-Wei Cheng, CEO of Siemens Northeast Asia and President and CEO of Siemens Ltd., China.

Building the most advanced automated factory here is a solid step forward, he added.

Chengdu is the gate to the heart of China's vast inland market. Eyeing its preferential policies and vast market, European companies are more convinced about setting up research centers here, said Jean-Marie Rousseau, EU regional innovation consultant.

Chengdu and some other regions in western China have been performing very well in recent years, after "missing step with the fast-developing eastern part of China," he said at the EU and Western China Cooperation and Development Forum, which was held during the fair.

By the end of June, 214 of the world's top 500 companies had come to Chengdu with research centers, plants and regional headquarters.

"The key factors of the multinational companies casting their eyes in Chengdu as well as other regions in China's west are the competitive advantages in cost, strong government support, abundant human resources," said Eivind Kolding, the CEO of Maersk Line and of the Container Business.

The world's largest container shipping line, Denmark-based Maersk has set up its largest office in China in Chengdu, and has planned to increase its staff in Chengdu as well to expand its business in the western regions of China, he added.

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