European enterprises bullish about growth prospect in China

20 May, 2019 12:00 AM printer

FRANKFURT: Although growing protectionism and economic uncertainty are disrupting world trade, Volkmar Denner, chief executive officer (CEO) of Bosch Group, remains optimistic about his company’s future growth.

As the sales revenue in China accounted for about 20 percent of Bosch’s total sales income of 78.5 billion euros (87.57 billion U.S. dollars) in 2018, he foresaw long-term growth potential in the Asian giant, the largest overseas market for the German engineering and technology company, reports Xinhua.

Keeping a close eye on the development and economic prospects of China, the CEO of the industrial magnate told Xinhua that he is upbeat about China’s economic performance in the long run, and that Bosch will further benefit from higher-quality growth in China.

Beyond Bosch, many European enterprises, particularly multinational giants, tend to see China as a stable and reliable “harbor” for overseas investment and business operations amid current global headwinds, and are participating in China’s economic transformation and upgrading, as China-EU economic and trade ties become increasingly stronger.

Beating market expectations to advance 6.4 percent year on year in the first quarter of 2019, China’s economy got off to a good start.

For many European companies, the stable and resilient economic growth in this key market is recognized as a significant drive for businesses, which is reflected in their recent annual or quarterly reports.

German pharmaceutical company Bayer said in its quarterly report that pharmaceuticals have registered an encouraging sales growth of 5.3 percent to over 4.3 billion euros (4.8 billion dollars) in the first quarter of 2019, “with business in China developing particularly well.”

Similarly, Swiss-based biotech company Roche registered a 63 percent pharmaceutical sales growth in China, resulting in a 17-percent year-over-year rise in international sales in the same period.

Meanwhile, the German auto manufacturer BMW Group delivered nearly 2.2 million vehicles to Asia, increasing by 45,000 deliveries on a year-on-year basis, according to its quarterly report.