The rapid growth of Chinese investment in the Netherlands has been cause for both excitement and anxiety. Many of the companies and other investors are still unknown and the background and objectives of their investment often remain unclear. The report explores the objectives, background and internal dynamics of these companies and focuses on the challenges they are facing both in the Netherlands and China. The most important findings are the following:
- The overall presence of Chinese companies in the Netherlands is still modest, despite rapid growth in recent years.
- We should avoid a simple binary division between political and commercial motivations behind Chinese investment in the Netherlands.
- Although the Dutch domestic market is small, it is attractive to Chinese companies because of its favourable regulatory and tax regime, high-quality business services, safe and stable society, well-organised government, connectedness to other European countries, nationwide English proficiency, and pragmatic business attitudes.
Many Chinese companies are here for the long term and are eager to learn and adapt to the local business environment. They are very aware of the huge cultural differences between China and Europe and their own lack of international experience, often amplified by a romanticised image of Europe. This provides the Netherlands with the opportunity to mould Chinese companies into enterprises that fit a Western economy and society. Through engagement and regulation, the Netherlands has the chance to help shape Chinese multinationals in the making.
All in all, business encounters with China, an emerging superpower, are inevitable and essential for the Netherlands to maintain and enhance its position in the world. The presence of Chinese companies provides opportunities to accumulate knowledge and expertise on China and to building bridges and trust.
