The Danish Prime Minister, Lars Løkke Rasmussen, has just been in China on an official visit. The visit marks the importance of the economic and political relations between Denmark and China.
Over the last 20 years, China has become one of the most important trading partners for Denmark. China moved from being Denmark’s 19th largest export market in 2000 to the 7th largest export destination for Danish goods and services in 2016.
In 2016, Denmark exported goods and services to China for more than DKK 41 billion (USD 6 billion). Machinery, electronic equipment, pharmaceuticals and food products are among the largest groups of exported goods to China.
Looking at imports, China has also grown in importance for the Danish economy. While Denmark imported goods worth DKK 10.5 billion (USD 1.5 billion) in 2000, making China Denmark’s 10th largest source of imported goods, China is now the 4th largest source of imports to Denmark, totaling DKK 43.3 billion (USD 6.4 billion) in 2016.
However, the economic relationship cannot be measured in trade alone. For Danish companies, investments in China are becoming increasingly important.
While Danish companies originally invested in China to gain access to competitive production facilities, investments in China are increasingly seen as a way to gain access to Chinese consumers, who seek the type of high quality goods that Danish companies can deliver.
Hence, Danish direct investments in China amounted to DKK 28 billion (USD 4.1 billion) in 2016 and around 500 Danish companies have established production facilities, offices, and retail outlets in China. These companies employ around 250,000 Chinese employees, making
Denmark one of the EU nations with the largest China-bound investment per capita.
Tourism is also important when cooperating with China. In February 2017 the Danish Minister of Industry, Business and Financial Affairs, Brian Mikkelsen, and Chairman of China National Tourism Administration, Li Jinzao, opened the China-Denmark Tourism Year 2017 in Beijing.
This event marked the beginning of a year full of events engaging every segment of the travel industry in both countries.
Tourism plays a significant role in promoting mutual understanding and intercultural dialogue between our two great nations. Hence, it is positive that the Danish government have taken steps to ease visa regulation to strengthen tourism and business trips between China and Denmark.
In Denmark, we look forward to welcoming the two Chinese pandas next year. The pandas illustrate the close collaboration between our nations. In the future, the Chinese and Danish businesses will work even closer together in our joint effort to ensure sustainable growth.