Chinese investment into Denmark is increasing rapidly, and this is just the beginning, as a new investment wave could be on its way. Danish companies’ readiness to initiate and complete a constructive dialogue with Chinese investors or partners, however, will be the deciding factor for the future development, according to Hans Halskov, former Danish Consul General in China and current Managing Partner at Across Partners.
– Danish companies and their technology are first-class, he adds and continue:
– making them very attractive to Chinese investor. Especially for Chinese industrial companies, which are on the look-out for complimentary product to improve their domestic competitiveness.
Greater mutual understanding to drive new investment wave
Chinese overseas investment is experiencing strong growth and 2013 set a record for job creation in Denmark as a result of Chinese investment, according to figures from Invest in Denmark, the Danish Ministry of Foreign Affairs’ investment promotion agency.
However, Chinese investment in Denmark could be a lot higher if Danish companies were better prepared to handle the often long process preceding the actual investment, according to Hans Halskov, who earlier this year founded Across Partners, a corporate finance firm dealing exclusively with facilitating the investment process for Chinese investors as well as the Danish company.
– The mission of Across Partners is to facilitate access to Denmark for Chinese investors. We find the right ‘match’ between investor and sellers, but at this stage the challenge has just begun. Both parties will typically bring their local culture into the process, thus active dialogue with the parties, separately as well as together, to set expectations and break down barriers becomes paramount. This is how we create value for both parties, explains Hans Halskov.
Chinese investor can open the door to export growth
Aside from capital, Chinese investors often contribute market access for the Danish company, providing a unique entry opportunity into the rapidly expanding Chinese market – something many Danish small and medium companies are seeking.
– In addition to the extra capital the Chinese company invests in the Danish company, often times the Chinese investor can provide the Danish seller a great and likely chance of making an impact on the Chinese market. The Chinese company will typically also invest in marketing, distribution, and development in China, as opposed to partnering up with a private equity fund or a European industry player, which might limit these opportunities, concludes Hans Halskov.