While China transforms into a haven for foreign investment, developed countries interested in participating in China's new wealth spare no effort to promote themselves. Denmark is one of many. Before the opening of the 11th China International Fair for Investment and Trade, Henrik Brandt Jensen, Director for China and India operations of Invest in Denmark under the Royal Danish Consulate, sat down for an interview with Beijing Review reporter Liu Yunyun to talk about Chinese investment in his home country.

Beijing Review: Currently, how many Chinese companies are investing in Denmark and in which sectors do they operate?

Henrick: We believe the entrance of foreign investment into Denmark can increase the competition of our own companies, which means that together the Chinese companies and Danish companies can invest in new technologies and new businesses and thereby create more jobs. So Chinese companies coming to Denmark not only help their own development, but also help the Danish economy.

Moreover, we believe in Chinese technology. Chinese companies like Huawei, ZTE, and Haier are very impressive. They are the very best of the Chinese companies. The technology of these companies is very very high. Some of them have already established research and development centers in Europe. We also welcome the leading Chinese companies in each industry to come to Denmark to set up local facilities.

What are the advantages of investing in Denmark?

The Economist Intelligence Unit's (EIU) Global Business Environment Rankings show that Denmark will retain its position-with a comfortable margin-as the world's best business environment in the next five years (2006-10).

The top five reasons to choose Denmark are: It is a natural gateway to the Scandinavian countries and the Baltic area. The Copenhagen Airport is the main hub in Northern Europe and Europe's most efficient airport and the country provides swift and easy access to all markets in the Northern European region. Secondly, it is one of the world's most flexible labor markets. Denmark has a low frequency of strikes. In Denmark, most people are insured against unemployment and thereby guaranteed a high level of social security, which results in a relatively high degree of labor market flexibility. Thirdly, it has one of the most advanced telecommunication infrastructures in Europe with world leading use of personal computers, Internet and broadband. Fourthly, Denmark has a favorable tax climate and the corporate tax rate is 28 percent and an extensive network of tax treaties and attractive rules for expatriates. The last but not the least, Denmark has a well-educated population with a high proportion of university graduates and excellent language skills. Many Danish people can speak three languages fluently.

What kind of favorable policies will the Danish government provide for Chinese companies?

Denmark is very open for foreign companies. There are no particular favorable policies for Chinese companies, but we have favorable tax rates for expatriate companies.

Compared to other European countries, the Danish rules for termination of contracts are very liberal. Provided that the legal and agreed notices are respected, the employer is entitled to dismiss skilled as well as unskilled workers at any time without incurring costs. This makes it easier for an individual business to adjust the size of its workforce in Denmark, compared to other European locations.

Dell has chosen Denmark for its regional contract center, and Sony chose Denmark as its distribution center. Chinese companies should also do something following these examples.

What kind of benefits do you think Chinese investment can bring to Denmark?

We especially welcome information and communications technologies, life sciences, renewable energy, fashion and design, textile and furniture, and maritime investments. Other industries are also welcome to invest in Denmark.

We are also working with Chinese pharmaceutical companies. We are trying to help them to find a way to get traditional Chinese medicine approved in the Europe.

Denmark is the leading country in the world for utilizing its wind energy. We can see a handful of Chinese companies are establishing wind energy programs in China. Quite a number of Chinese companies are interested in learning from the Danish way of doing this. I know that many Chinese wind energy companies are thinking of establishing research and development facilities in Denmark.

Some countries see Chinese products as threats to their own production. What's your view?

I never see Chinese products as threats. I think we cannot live without Chinese products. The Chinese products are benefiting our people and the Chinese companies will help boost the competitiveness of our own companies.

What do you think of the China International Fair for Investment and Trade held in Xiamen each September?

I attended last year's trade fair. I like it. I am very new to China. Xiamen was the second city I had been to when I first visited China. It was very beautiful. We are going there this year to participate in those matchmaking events.