Danish Businesses Express Optimism for China Partnership Amid Economic Insights from Xi Jinping

Danish businesses are increasingly optimistic about future collaboration with China, spurred by a recent letter from President Xi Jinping. The missive, addressed to the founder of the Danish Chamber of Commerce in China, encouraged Danish firms to contribute to enhancing relations between China and Denmark, as well as within Europe. As the second-largest economy globally, China presents vast opportunities for growth and collaboration. Xi's message expressed gratitude for the chamber's devotion and the belief in China's development, making a strong case for foreign investment in the country.

Lars Fruergaard Jørgensen, CEO of Novo Nordisk—a healthcare giant based in Denmark—emphasized the significance of China's market to their operations, stating, "China stands as our largest market, and our ambition is to continue accelerating innovation and working with partners in our joint fight against serious chronic diseases." Novo Nordisk has been present in China for nearly 30 years and recognizes the country as pivotal to its global footprint.

Meanwhile, Danfoss, another major Danish firm, is equally enthusiastic about its prospects in China. Xu Yang, the President of Danfoss China, shared insights on the company’s growth journey in the Chinese market. Over the years, Danfoss has witnessed China's economic transformation first-hand, and it prides itself on playing a part in this remarkable advancement. Expressing a strong commitment to China, Xu highlighted that the opportunities linked with the country’s emphasis on high-quality and green development are promising for businesses like Danfoss. In 2024 alone, Danfoss saw substantial growth in crucial sectors such as data centers and energy storage, indicating a bright future.

President Xi's correspondence has been met with enthusiasm from the business community, particularly for its forward-looking message about collaboration. Danfoss, for instance, has gradually transitioned its focus from merely manufacturing in China to innovating within the country. This shift reflects the nation's increasing capabilities in intellectual property protection, paving the way for more robust innovation.

Additionally, Xi Jinping expressed hopes for the Danish Chamber of Commerce to serve as a crucial link between China and Europe, facilitating deeper mutual understanding and cooperation. This sentiment resonates throughout Europe, as high-level exchanges between Chinese and European officials have seen an uptick, laying the groundwork for stronger economic ties.

For instance, the recent establishment of a European center by the Chinese electric vehicle manufacturer BYD in Hungary is set to create 2,000 jobs. This move illustrates Hungary’s commitment to collaborating with China in developing electromobility technology. Prime Minister Viktor Orban highlighted that such partnerships with China are essential for Hungary to remain competitive in a rapidly evolving market.

Frequent dialogues and exchanges between China and European nations indicate a growing recognition of the importance of partnership in the global economy. The EU's increasing engagement with China, particularly recognizing its role in maintaining a multilateral trading system, is central to navigating the international landscape of economic uncertainties.

In terms of economic outlook, experts have noted that with the current geopolitical tension and economic headwinds, China's stable and transparent policies make it a desirable destination for foreign investment. The Chinese authorities have expressed unwavering commitment to promoting a business-friendly environment, further attracting foreign capital. According to data, the number of foreign-funded enterprises in China reached approximately 1.24 million by 2024, indicative of a thriving business ecosystem.

As both nations strive to strengthen their economic ties, Xu from Danfoss reiterated the potential for continued success in China. He remarked on the importance of fostering a cooperative approach with Europe while emphasizing the need for both sides to have a pragmatic perspective toward each other.

In an era where the global economy faces significant risks, the message resonates: addressing challenges through cooperation and remaining open to partnerships is crucial. China's commitment to a stable policy environment reinforces its attractive proposition for multinational corporations looking to invest in Asia.

In summary, the confidence expressed by Danish businesses in light of Xi Jinping's remarks underscores the potential for a fruitful and collaborative relationship between Denmark and China. As both parties seek to navigate challenges and explore opportunities, the outlook for their economic engagement remains promising.

This optimism serves not just as a reflection of individual companies’ ambitions but as a testament to the potential of Chinese-European cooperation in fostering a sustainable and prosperous economic future.