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Schneider Electric, a world leading electrical company based in France, plans to step up its investment in China in the near future, said a high-level company official.
The company came to China in 1987 and has so far established 18 regional offices, 3 logistic centers, one technical training center and eight joint ventures, according to Harry Hellawell, chairman and general manager of Schneider Electric (China) Investment Co Ltd.
Although Hellawell declined to give the specific figure of the firm's total investment and profit, as Schneider is a listed company, he said in the past few years it had begun to render dividends for shareholders.
The company has maintained an annual growth rate of 30 percent in the past four to five years and expects to continue a 20 percent growth rate in the future.
"We are very successful in our investment in China," Hellawell said. "We will need another 100 million yuan (US$12 million) investment next year in the country."
The company is currently preparing for a new subsidiary of US$25 million in Tianjin, which is to be launched in December.
"And we're looking for possibilities of two new joint ventures next year," he added.
Chinese operation makes up 5 percent of Schneider's global revenue. China is currently the sixth largest country for Schneider in the world, but Hellawell said he believed that in the next five years, it would become the third most important country for the group only after United States and France.
At present, the firm's priority is to set up manufacturing bases and supply the Chinese market, Hellawell said, but it has laid out an aggressive plan to export China-made products to France in the next three to five years.
As the country becomes a more competitive market, the key to survival in the electrical market is to export products to the outside world, he said.
Hellawell said he regards the upcoming entry to the World Trade Organization (WTO) as negative.
"We have already made very good penetration in China and enjoy a very good tax rate (as a foreign company)," he said, adding that after WTO entry, all companies will be treated equally and preferential tax policies will disappear.
"But we will pay taxes as other companies and hope the benefits of China's WTO entry will offset any downs," he said.
(China Daily 11/05/2000)
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