Business / Economy

China, Denmark launch incubator to help start-ups, boost investment

(Xinhua) Updated: 2016-09-08 09:33

COPENHAGEN - A business incubator, jointly invested by Chinese and Danish entities, was opened here on Wednesday to help ease the way for Chinese companies entering the Danish market and Danish companies entering China.

Located a stone's throw from the Danish landmark statue of "The Little Mermaid", Innovation House China-Denmark is the first business facility of its kind designed to target the Chinese market.

It will offer companies from both countries practical solutions combined with in-depth local knowledge, according to Mads Kragh, CEO of Vaeksthus Sjaelland and Vaekstfabrikkenrn, one of the shareholders of Innovation House.

Kragh said it might be difficult when a company enters a foreign market as it will face many unexpected problems at the beginning stage.

"So it is important to create a safe harbor for Chinese companies coming to Denmark as well as Danish companies seeking opportunities in China," he said.

Companies can rent office space at the Innovation House, where a team of advisors can help familiarise them with the culture, rules and regulations of the other country.

Claus Loenborg, CEO of Copenhagen Capacity that is behind the idea of setting up the incubator, said even though Denmark have attracted some investors from China, many of them had hard time of growing business and successfully gaining foothold in the local market.

"Thus we saw the need to establish a facility like this several years ago," Loenborg said.

Chinese investors held 49 percent stake in the incubator and their Danish partners owned 51 percent stake.

"The opening of the Innovation House will establish an excellent platform for enterprises in both countries," said Liu Biwei, Chinese Ambassador to Denmark, at the opening ceremony.

"It will deepen the Denmark-China cooperation in various aspects such as technology research and development, industrial and capital docking, and stake purchase and acquisition," Liu added.

China and Denmark have in recent years witnessed a robust development in trade and investment despite the difficulties in global economic growth and international trade.

According to statistics in Denmark, the bilateral trade has exceeded $10 billion for two consecutive years since 2014. In the first half of this year, trade volume between China and Denmark reached $5.3 billion, much better than the foreign trade outlook of both countries.

"The two countries have great potential of cooperation in areas such as technical innovation, industrial upgrading and service trade," the Chinese ambassador added.

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