Bilateral relations between Denmark and China

In 1980, the Sino-Danish Mixed Committee of Trade and Economic Cooperation was established and the bilateral trade expanded by leaps and bounds over recent years. The annual trade volume between two countries was doubled from 1992 to 1995, rising from about US$ 300 million to US$ 600 million. According to statistics from the Chinese Customs, the trade volume between China and Denmark in 2003 was US$2.46 billion, an increase of 58.2% from the previous year. China's export value was US$1500 million and its import value was US$960 million, up by 63% and 51.4% respectively compared with the previous year. The main commodities China exported to Denmark were mechanical and electrical products, garments, textiles, plastic products, shoes, medical products, toys, decorative ceramics, traveling articles and suitcases and bags, etc. and the main commodities China imported from Denmark were food processing machines, fertilizer, precision instruments, generating and refrigerating equipment, etc.

Denmark started its direct investment in China in 1982. Up to the end of 2003, there were a total of 267 business projects with Danish investment in China with contracted investment reaching US$1.41 billion and the capital actually utilized totaling approximately US$519 million, mainly involving medicines, navigation, diary products, smelting, nonferrous metals processing, chemical industry, marine machines, building materials, foods, environmental production and technical consultation in architecture and other fields. The main Denmark based enterprises in China are Novozymes Bioengineering Co., Ltd., Maersk Navigation Co., Ltd. Danfoss Co., Ltd. and Danisco Co., Ltd.

(Source: Ministry of Foreign Affairs, the People's Republic of China)

The Economy

The Danish economy has in recent years undergone strong expansion fueled primarily by private consumption growth, but also supported by exports and investments. This thoroughly modern market economy features high-tech agriculture, up-to-date small-scale and corporate industry, extensive government welfare measures, comfortable living standards, a stable currency, and high dependence on foreign trade. Unemployment is low and capacity constraints are limiting growth potential. Denmark is a net exporter of food and energy and enjoys a comfortable balance of payments surplus. Government objectives include streamlining the bureaucracy and further privatization of state assets. The government has been successful in meeting, and even exceeding, the economic convergence criteria for participating in the third phase (a common European currency) of the European Economic and Monetary Union (EMU), but Denmark has decided not to join 12 other EU members in the euro. Nonetheless, the Danish krone remains pegged to the euro. Economic growth gained momentum in 2004 and the upturn continued through 2006.

(Source: CIA World Factbook)

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