AFTER years of rapid economic growth, China is flush with money and is becoming a big investor in western countries large and small. Today, 529 Chinese enterprises are operating in the Netherlands which is the third largest destination in the European Union for Chinese investment — after Germany and Britain and ahead of France and Italy.

The Netherlands attracts foreign investors with favorable business environment — coastal location, advanced transport system, and tax incentives. Many multinational corporations have set up their distribution centers, R&D facilities, and regional or global headquarters in the country.

Shanghai Daily interviewed Chris Teunissen, executive director of the Netherlands Foreign Investment Agency to learn about opportunities and challenges for Chinese investors in his country.

Chris Teunissen used to work in Beijing in the 1990s and had 25 years of working experience in Asia as a banker. He speaks fluent Mandarin and helps Chinese companies in consumer goods, agriculture, manufacturing and high-tech industries to set up operations in the Netherlands.

Q: What does NFIA do to attract Chinese investors?

A: We have many ways to attract Chinese investors to the Netherlands. We go to seminars, give interviews, publish quarterly newsletter in Chinese, and work closely with our embassy and consulates in China. Anyone who appears seriously considering investing in the Netherlands will be brought to our attention. We will visit them. We now have four offices in China in the cities of Shanghai, Beijing, Chongqing, and Guangzhou. We make sure that our 10 staff workers who all speak Chinese will visit potential investors to explain the benefits of investing in the Netherlands and help arrange what we call a fact-finding trip for them. They normally visit more than one region in the Netherlands. We also welcome them to visit other countries, because if you want to set up a head office in the Netherlands, you may want to see how convenient you can use that office for further expansion. We also arrange their meetings with other investors who are already there to hear their stories. Success breeds success. We always tell them go and see for yourself. It's more important to experience than to read a colorful brochure.

Q: How can you tell a Chinese company is good and ready to invest in the Netherlands?

A: Every company that wants to invest abroad is probably a good company. You have to have a profitable business model before you go overseas. We rarely find a company that is not ready to invest. But we make sure that their business plans are realistic and they know about local regulations, language and cultural differences, and employment of local workers. Our partners in the Netherlands will also ask them serious questions concerning the issues. If you ask whether we tell everyone to come to the Netherlands, my answer will be no. We do have obligations to tell investors the experiences of other companies in the Netherlands so that they are very informed. It is up to investors to realize their corporate social responsibility and their business motives. We will help newcomers understand the risks and opportunities of doing business in the Netherlands and see if they can replicate the success of others.

Q: How are Chinese companies doing in the Netherlands?

A: China is a relatively new market and it has been opening up for the past 30 years. I think the first investment from China came about a decade ago. My impression is that we are still in the initial stage or an exciting honeymoon period, so to speak. The 529 Chinese investors in the Netherlands are very welcome there. I have never heard any negative story from them. If you look at the list you will find many of them are very successful companies such as ZTE, Huawei, CIMC and ICBC. We also have a Chinese dairy firm, Ausnutria, which runs four modern plants on pastureland in northern Netherlands where they welcome to see such high-tech facilities. They produce baby formula and other products of cow and goat milk. It is interesting to see Chinese characters in the northern part of the Netherlands. They are very welcome there. Because the Dutch people know the Chinese like to have healthy baby food and they welcome them to use Dutch cows and Dutch technology in milk production.

Q: How long does it take for a Chinese company to start operation in the Netherlands?

A: I began to study cases in different parts of China the past few weeks and found the fastest maybe six months. But on the average I would say it takes about 14 months from making the first contact to going on a fact-finding trip, meeting the tax advisors, hiring local staff, finding an office through real estate agents, and making a board decision to start a new company. It means if we meet some new investors in October this year, we would be greeting them in the Netherlands in next winter. That is a realistic expectation.

Q: Are you worried that China’s economic slowdown may hurt the investor sentiment?

A: I've been in Asia for 25 years and I've seen at least two very significant economic downturns. One in 1997 when I was working in Singapore and one in 2008 when I was working in Hong Kong. It affected all industries that were active in the region. I'm not a worrying person. I'm a realistic person. When the economy is slowing, it's logical that investment will slow too, in absolute numbers. For individual companies, it may be different. Some companies may have more cash and take the opportunity of a slowdown to invest. We are realistic with our targets and we are also realistic when we talk to investors. Most of our clients are strategic investors. They understand it may take a number of years for them to recoup their investment or get a return on their investment. It is their strategy to invest outside China to offset risks caused by economic slowdown at home. We don't worry that we will have nothing to do. We see about two to three investors every week, and welcome about 30 to 50 new investors per year to the Netherlands.

For more information, please visit the official website of Netherlands Foreign Investment Agency: www.investinholland.com (English); www.nfia-china.com (Chinese).