The little big man of Europe

"These decisions affect every company that aims to do business in the EU. Whoever aims to understand and influence these decisions needs to be in Belgium.

"What is less easy to capture in stats and figures is another reason why so many Chinese people appreciate us - the ability to enjoy what is good about life: good food, stylishness and high living standards."

Starting off in February 2007 with just five employees, Huawei's activities in Belgium have grown exponentially. Today, they total around 140. The telecommunications giant says Belgium is now a "key part" of its European investment strategy.

"Investments between Belgium and China are complementary and of strategic importance for both sides," says Hudson Liu, country manager of Huawei Belgium.

"Belgium is a strategic location for us for a number of reasons: Our activities here include a business center, an EU affairs office and an R&D site with facilities in three Belgian cities - Leuven, Louvain-la-Neuve and Gent.

"In the framework of our local business operations we have created close relationships with key telecom operators and business channel partners.

"But we are not only here to do business. Belgium is home to the headquarters of the EU institutions, and we have created our public affairs office in Brussels to maintain a two-way dialogue with EU stakeholders.

"Belgium has also key competence to offer in the field of photonics and chipset research. We have therefore decided to re-invest profits here to draw on local expertise, namely by acquiring Belgian R&D startups such as M4S and Caliopa. By making them a part of our Belgian R&D site, we are enhancing our global capabilities and competitiveness."

Further evidence of growing Chinese interest came last year when 100 Chinese companies, including a soft drinks manufacturer, an electronics company, a bank and a restaurant chain, chose Belgium as the location for their European plants.

The investors say that in time 5,000 jobs could be created and that they chose Belgium because of its strategic location, low real estate prices and an advantageous tax regime.

Elsewhere, ICBC, one of China's Big Four banks, which has a branch in Brussels, has made a major investment in the Antwerp diamond sector.

"For us, China is the market of the present and the future," says Ari Epstein, of the Antwerp World Diamond Centre. "It was actually the Chinese who took the initiative for the investment project. We are of course very happy with this."

Everyone is currently courting Chinese companies. The flood of Chinese investment in Belgium is particularly welcome to a government intent on ramping up growth.

The Belgians are keen for this to be a two-way street. China, with its 1.3 billion population and relatively underdeveloped market offers huge opportunities for Belgian businesses to invest and, in September, several major deals were struck following a four-day trade mission to China led by Flemish Premier Kris Peeters.

Chinese interest in Europe is part of a shift in the "going-out" strategy.

"As this policy is put into practice by more and more Chinese companies, these firms may now also be looking at gaining a foothold in the European market or moving closer to existing European customers in order to better manage their market," says Bernard Dewitt, chairman of the Belgian-Chinese Chamber of Commerce.