REGIONAL> Highlights
Chinese enterprises show great interest in South East England markets
By Chen Qide
Updated: 2008-06-25 10:15

SHANGHAI: More Chinese enterprises are showing interest in investing in South East England as part of their strategy to expand into Europe, according to Simon Jaggar, senior international business manager of South East England Development Agency, Asia Pacific (SEEDA).

Simon Jaggar said at least seven out of 600 Chinese firms in SEEDA's database are developing close contacts with the agency to seek the investment opportunities.

"They are much keen on the investment in the UK," Jaggar said. South East England, a locomotive of the British economy, has become a place for Chinese enterprises to launch projects to spearhead their European market activities.

About 70 Chinese firms have invested in the region by setting up plants with European headquarters and R&D centers.

Huawei Company, for example, started its projects in Basingstoke in 2002. It has invested $70 million in setting up its European Headquarters. Its annual sales amounted to $450 million last year.

As the largest Chinese telecommunication investor in the UK, Huawei has connected with British Telecommunication to expand into the British and European markets, said William Xu, president of Huawei Europe.

Britain’s electronics industry is worth 495.8 billion yuan, with eight of the world's top 10 electronics companies located in South East England.

Feng Zhe, assistant director of the Investment Promotion Department of Shanghai Foreign Investment Development Board, said the Shanghai government is helping local enterprises invest outside China.

"The focus will be placed on not only State-owned firms as the city has done before, but also on high quality private enterprises and small and medium-sized companies," Feng said.