Banking power
Seated at his director’s desk, Zhang Weiwu looks out over one of Amsterdam’s most beautiful squares, the Museumplein. "It’s a top location for a top bank," laughs the General Manager of the Amsterdam branch of the Industrial and Commercial Bank of China (ICBC) Europe. This superbly renovated bank building was formally opened in 2011. Since then, Zhang has had responsibility for developing the bank’s market position as rapidly as possible in North-West Europe. "Results over the first few months have exceeded our expectations," he says.
"It all demonstrates that our potential for growth here is huge. Increasing numbers of Chinese companies want to be nearer to their customers in the increasingly important European market. Amsterdam has for centuries been an important gateway into continental Europe for China, and this still holds true. Operating from here, it’s easier to get to know the market and to supply clients on time. We need to move with our customers, and that’s why we have chosen to position ourselves at the heart of the rapidly increasing flows of trade between China and the Netherlands. This location suits us perfectly."
World power
The rapid internationalisation of ICBC is a signal of China’s rise as an economic world power. "Europe is a very attractive growth market for us," explained ICBC chairman Jiang Jinqing at the opening of the Amsterdam office. "There are many Chinese companies which have plans to set up their own activities in the European Union, or have already taken the first steps."
Figures from China’s ministry of commerce confirm this observation: in 2010, Chinese businesses invested 50 billion euros in foreign branches or acquiring interests in non-Chinese businesses, mostly in Asia and Europe.
And the predictions are that this will only increase in the coming years.
Sixth trading partner
The decision to locate ICBC’s own base of operations for the North-West European market in the Amsterdam Metropolitan Area was not a difficult one, he continues. "We are embracing a business opportunity," he says.
"We can eliminate currency risk for our customers by opening euro accounts and RMB accounts for them."
Another reason for ICBC to choose a top Amsterdam location is the stable political and economic business climate, coupled with the availability of sufficient English and Chinese speaking people. "We want to grow quickly and steadily, and for that you need high-quality internationally orientated people. And on top of that, Amsterdam in particular is an attractive living environment for us as expats. There are also attractive tax benefits for foreign employees working temporarily in the Netherlands. And everywhere in the city, I come across evidence of the centuries-old connections between the Netherlands and my homeland. It feeds into a sense of familiarity."
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