Companies’ activities in China are crucial for global performance

The third comprehensive survey of Danish companies in China has been launched. Conducted biannually, this survey maps the activities of Danish companies in China as well as their challenges and opportunities on this strategically important market.

‘In 2024, global geopolitical tensions have caused Danish companies to scrutinize their China business closely and the survey shows that many Danish companies are facing a range of challenges, including political or economic uncertainties […] Nevertheless, companies’ activities in China still remain crucial for their overall global performance,’ says the Ambassador of Denmark to China, Thomas Østrup Møller, in the preface.

The survey provides policy makers and company executives with factual insights and information to guide decisions and priorities in the years to come.

China’s attractiveness as an innovation market

The results from the first report were published in 2020, and this year almost 100 Danish companies in China have contributed to the survey. 

Some key takeaways are:

• Companies’ activities in China are crucial for their overall global performance for 68 % of the companies, and based on turnover, China ranks as a top two market for almost half the Danish companies in China.
  
  

• The most common activities for Danish companies in China are related to sales and customer services. This indicates that the Chinese market is still more than a manufacturing hub for Danish companies.
  
  

• 38 % of Danish companies believe that current Chinese framework conditions within the green transition will have an improved effect on their future turnover in China.
  
  

• Four-in-ten companies believe that China’s attractiveness as an innovation market has increased over the last two years.

Associate Professor and Head of SDC’s Innovation Management programme Dmitrij Slepniov has among others contributed to the project, and he says:

'The 2024 survey reveals a resilient commitment of Danish companies to innovation. Notably, while the general market climate may have dampened, many Danish companies see continued opportunities for technological and market innovation. This indicates a robust confidence that China's market remains a vibrant hub for innovation, reflecting a strategic pivot from mere low-cost high-volume manufacturing to high-value creation in all parts of the value chain.’