State of the Nations: Denmark and China challenges and opportunities By ambassador Friis Arne Petersen

Agenda 1.Danish-Chinese relationship –Increasing political interaction 2.Danish-Chinese trade and investments –Denmark as a player in the Chinese market –A great investor among the EU countries –Danish investments thrives 3.The future for Danish investments –The future of the Chinese politics and economy –Where are the opportunities for Denmark? 2

Increasing political interaction 3 Danish cultural season in China

4 Danish trade surplus with China Source: Danmarks Statistik, February 2015 (China incl. Hong Kong) Danish companies and products do well in China Billion DKK

Source: Eurostat, SITC&BOP, (China incl. Hong Kong and Macau), February Euro Denmark is in the first league of trade with China in the EU Export in goods and services pr. capita to China in 2013

Investments in China have grown Source: Danmarks Statistik, FDI, november 2014 (China incl. Hong Kong) 6 Billion DKK

Investments to China pr. capita 2013 top in EU Source: Eurostat, FDI, February 2015 (China incl. Hong Kong) Danish companies are more dependent on trade and investments with China than other EU countries 7 Euro

Positive outlook for Investments 8 How do you perceive the Chinese marked? Does your company plan further investments in China over the next 2 years?

Economic case: Historically 9 Source: IMF – World Economic Outlook, October 2014, (Estimates from 2013)

China will be the world’s largest economy 10 Source: IMF – World Economic Outlook, October 2014, China incl. Hong Kong By some accounts, the Chinese economy is already the world’s largest Billion USD (PPP)

What the future brings for China 2015: NPC/CPPCC The ”new normal” Reform of the SOE’s Anti-graft campaign Rural area and agriculture ”Go global” strategy Pollution : The 13th five year plan Deepening reforms Corruption and rule of law Rural area and agriculture Opening up of China The environment and pollution 11

China’s reform program match Danish know-how 12 Environmental protection Sustainable energy Sustainable urbanisation Shanghai Free Trade Zone and new FTZ’s. Trade liberalisation Anti-corruption Middle income illnesses Demographic shifts/aging Green tech Energy solutions Architecture/ constructions Blue Denmark Competitive SME’s Leader in transparency Cutting edge pharmacy Welfare knowledge China’s wishes and reform program Danish know-how

Why? China is Denmark’s second biggest trading partner outside Europe in Three new growth advisors at the Danish Embassy. Increased cooperation between authorities in Denmark and China creates opportunities. Political access enhances the chance of success for Danish companies in the Chinese market. Increased commercial activity enhances political access. What is all the fuss about? 13

Relations at an “all-time high” 2008: Comprehensive strategic partnership Strengthening political dialogue Climate, energy and environment Research and innovation Food safety and production methods 2015 the next chapter: The 65th anniversary of diplomatic relations The embassy is investigating new corporation areas The political climate have an effect on the economic relationship The future looks bright for Danish investments in China 14