The little big man of Europe

"If that is the case, then it would be a mistake not to include Belgium in their range of options."

A source at AWEX, the Walloon foreign trade and investment agency, says that China will want to use its large cash reserves to buy into developed nations and sees Belgium as an ideal destination. The Chinese see Belgium as being on a growth path and values the legal standards and openness of its economy.

China is Belgium's largest trading partner in Asia, with more than 1,500 companies exporting to China and 300 investors in China.

On the flip side, Belgian Prime Minister Elio Di Rupo underlines the "many benefits" available in Belgium to attract Chinese companies and investment, saying the country is a "great gateway" to the European market.

Another appealing aspect to would-be Chinese investors is that office space in Brussels remains eminently affordable.

According to a recent report by commercial real estate brokers Cushman & Wakefield, Brussels' EU quarter ranks only 35th on a list of the most expensive office districts worldwide.

The average annual rent is 405 euros per square meter per year, while comparable cities, such as Milan, Amsterdam and Madrid, are more costly.

London's West End is the most expensive place to rent an office, followed by Hong Kong and Rio de Janeiro.

Belgium's credentials also received a shining endorsement in a recent KOF Index of Globalization survey, which measures the economic, social and political dimensions of globalization.

Belgium kept its position as the most "globalized" country in the world, ahead of the Republic of Ireland and the Netherlands. On another ranking, measuring "social globalization" of a country, Belgium is placed a lofty fourth.

But it is Belgian ports that are playing an increasingly important role as hubs for Chinese exports to Europe, an indication of which came recently when one of the world's largest container ships, the Mary Maersk, pulled into Antwerp, its first port of call on its maiden voyage from Shenzhen.

In the first nine months of the year, the port welcomed 90 large container ships as a result of the widening of the Westerschelde, the channel leading from the North Sea to the port.

"The return on that investment is huge and allows our port to improve its competitive position," says Marc Van Peel, Antwerp's alderman of port affairs.

Antwerp's inland position, once seen as a drawback, has now been turned into an advantage.

"Antwerp is centrally located in Europe," Flemish Port Authority CEO Eddy Bruyninckx explains. "Goods can not only be brought further inland once they are in port, they can be handled in various ways before efficiently being transported to their final destination in the European hinterland through an extensive network of connections."

In keeping with this trend, Chinese shipping group Cosco's new container ship, the Cosco Belgium will become a permanent fixture in Antwerp harbor on the service between China and Europe. It is the first time a Chinese container ship of this size (13,000 containers capacity) has been given the name of a European country.

Belgian harbors are up against stiff competition from other European ports such as Rotterdam, Hamburg and Le Havre, but Antwerp claims the biggest growth in container traffic (27 percent).

Antwerp also benefits from a recently-started direct rail link with Chongqing in Southwest China, a municipality of 32 million inhabitants.

"The project is focused on freight transport and its main goal is to gain time," says Van Peel. "Goods could be delivered in 20 to 25 days, compared with 40 days by ship. It can play a crucial role for transport where time does play a certain role."

He gives the example of petrochemical products, computer parts and automotive parts.

Van Peel also points to other opportunities. "China wants to invest in exports to Western Africa. Why not opt for rail haulage to Antwerp, in order to continue by ship from there?"

Chinese State companies have also acquired a significant commercial interest in another Belgian port, Zeebrugge, which, with almost half its cargo coming from China, will be positioned as "the most Chinese harbor" in Europe.

Port president Joachim Coens says the Chinese preference for Zeebrugge is because of its deep outer harbor with capacity for giant ships and its strategic location close to the hinterland, adding, "It's actually closer to Cologne than Hamburg harbor."