Swedish investments in China larger than previously thought

According to the results the surveyed companies, representing the vast majority of Swedish business interest in China, have invested a total of 1.8 billion US-dollar in China. This is substantially more than estimated by official statistics. Approximately 28,000 persons are employed by these Swedish companies in China. Revenues totaled 4.6 billion US-dollar in 2003, of which as much as 1.0 billion US-dollar were exports from China, mainly from the IT/Telecom sector.

The business climate for Swedish companies in China could, however, improve further. The survey reveals that two thirds of Swedish companies in China were negatively affected by different trade and investment barriers in 2003.

- China's opening to the world economy represents one of the greatest steps toward free trade. It is encouraging to see how Sweden's presence in China has expanded. However, there is still great potential to improve the conditions for trade and investment. It is in the mutual interest of China and Sweden to further reduce the barriers to trade and investment, says Mr Börje Ljunggren, Ambassador of Sweden to China.

The single most widespread trade barrier stated by the participating companies was complicated and time-consuming customs procedures. Other concerns were lacking trading and distribution rights, slack protection of Intellectual Property Rights (IPR) and unfair pricing competition from domestic companies. Complicated, conflicting or non-transparent government regulations in general may be a source of several barriers.

- Trade facilitation is a priority in the bilateral relations between China and Sweden. In fact, on 25 January 2003 there was joint article in the International Herald Tribune on the need to make trade easier by Mr Shi Guangsheng, the then trade minister and Mr Leif Pagrotsky, Swedish Minister for Industry and Trade. We have already initiated cooperation in this field and we intend to deepen it, says Mr Börje Ljunggren.

The survey also shows that small and medium sized enterprises (SMEs) find it particularly difficult to overcome tariffs and investment barriers.

- SMEs represent the next wave of investors and traders in China. It is important that they can overcome the obstacles and further develop our mutually beneficial economic relations, says Börje Ljunggren.

Questions may be put to

Mr Erik Widman
Second Secretary
erik.widman@foreign.ministry.se
+86 1370 123 9463

or

Mr Pär Ahlberger
Minister
par.ahlberger@foreign.ministry.se
+86 1370 123 9462