(ShanghaiDaily, Sept 19,2006)LONDON is the most popular destination for Chinese companies expanding into Europe - attracting 15 percent of all Chinese direct investment into the continent since 2002, a new survey has found.

The British capital has reeled in 34 investment projects from China since 1997, according to Think London, the city's foreign investment agency, citing figures from the Ernst & Young European Investment Monitor. Twenty-seven of those deals have been completed since 2002.

Over the past four years, London has attracted four times as many Chinese investment projects as Hamburg or Paris, the study found.

"London is seen by Chinese companies as a natural base for expanding into the wider European, African and Middle East markets," said Michael Charlton, Think London's chief executive. "It is recognized as China's gateway for entry to the European Union."

The United Kingdom, whose trade between China has more than doubled over the past five years, is by far the largest recipient of Chinese investment in Europe, and a third of that goes to London, the report said.

In 2004 alone, Chinese firms' investment in London deals totaled 120 million British pounds (US$225.5 million), it said, without giving comparative figures.

London's Chinese business community now comprises more than 250 mainland companies, most of which have chosen the city for their European sales and marketing headquarters. In addition, there are 2,000 businesses operating in London that are Chinese-owned as well as a resident Chinese community of about 80,000, Think London said.

The investment agency, which recently opened an office in Beijing, said it is in the process of assisting Chinese high-tech enterprise Hebei Jingniu Group set up its European headquarters in London.

The agency has also helped China National Offshore Oil Corp, the country's third-largest oil company, establish a London office.
source:ShanghaiDaily
tag:China