Over the past five years, Danish companies have doubled the number of workers they employ in China, due not least to tax breaks offered by Chinese government. According to Avisen.dk, which obtained the figures from the Danish Embassy in Beijing, certain Danish companies can legally avoid tax for between three and five years after establishing themselves in the country,
Hans Halskov, Head of Marketing at the embassy, told Avisen.dk that Danish companies created 100,000 new jobs in China, double the amount that they had created five years ago,
“The key is that the Chinese market has grown, while the same time Danish companies have shifted production from Denmark”, Halskov said.
Cleaning company ISS, shipping and container giant A.P. Moller-Maersk, clothing company Bestseller and beer giant Carlsberg have all expanded their Chinese operations in recent years, Avisen.dk reports.
While the embassy could not confirm how many of the of the 400 Danish companies operating in China are receiving tax breaks or other perks, Avisen.dk reports that IT, wind power and pharma companies are treated especially favorably. All can gain a 100 percent tax exemption for up to five years.