Huge opportunities for EU exporters in China: study

A study supported by the European Commission (EC) has found that exporters of green technology, high-value goods and business services will find huge opportunities in China.

The study, which was an assessment of the expanding Chinese market, identified major opportunities for European Union (EU) exporters.

The study, which was released to the media on Tuesday, the middle class in China is expected to number 150 million by 2010, opening new opportunities for EU companies in consumer goods. The study estimates that the market for high-value goods in China will be worth one trillion euros three years later.

EU providers of business to business (B2B) services will also find opportunities in the Chinese service sector, whose market size may expand to 500 billion euros by 2010.

Green technology and services present another big opportunity for EU exporters, as the Chinese government focuses on environmental protection. The market is expected to be worth 98 billion euros by 2010.

The study advised EU companies who want to compete in price to manufacture goods in China itself in order to be cost-competitive. According to Xinhua, this strategy is already being employed by many new European companies who have production units in China so they can compete in the Chinese market.

The study also pointed out that while China has made an effort to liberalize its economy, there were still concerns about China's market access, intellectual property rights protection and the removal of non-tariff barriers.

Chinese non-tariff barriers cost EU companies at least 21.4 billion euros a year in lost business opportunities, the study said.

The new study was consistent with the new strategy for EU-China trade released by the EC last October. The strategy review pointed out that the Chinese market was full of both challenges and opportunities.