Chinese companies operating in the European Union have voiced deep concerns over the worsening business climate, from growing uncertainty and discrimination to the politicization of trade and investment, according to the annual survey of the China Chamber of Commerce to the EU (CCCEU). The ratings by Chinese companies on the business environment in the EU declined for the fifth year in a row since the survey first started. In 2024, Chinese companies gave the EU business climate a score of 62 points, compared with 73 points in 2019. Some 68% of respondents believe the business environment has worsened over the past year. More than half of the Chinese companies surveyed say the EU market is no longer “fair and open”. This trend reflects mounting challenges in political, economic and talent-related areas, says the report, published by the CCCEU and consulting firm Roland Berger after a four-month survey and interviews with some 200 Chinese companies in the EU.
Uncertainty has emerged as the primary challenge, according to 78% of the Chinese companies surveyed. Rising compliance costs and growing anti-China sentiment are also significant factors affecting Chinese companies in the EU. Liu Jiandong, Chairman of the CCCEU, said the EU market is strategically important for Chinese companies, which have set up research, design and production facilities across the bloc. He also cited the huge daily two-way trade volume between China and the EU at more than €2 billion. He expressed the hope for more China-EU cooperation as the two sides mark the 50th anniversary of the establishment of diplomatic relations in 2025.
According to the survey, market barriers driven by political issues have become the most pressing challenge. At least six out of 10 Chinese companies feel they have been treated differently due to their Chinese origins, which poses challenges in public procurement, market access, eligibility for subsidies and incentives and approval procedures. Chinese companies have complained about the EU’s overemphasis on “economic security”. They fear this may politicize normal business activities, according to the report. About 94% of the companies surveyed feel that EU policies, including “economic security” and “de-risking”, have negatively impacted their operations and undermined business confidence. The EU’s designation of Chinese companies such as Huawei as “high-risk vendors” has also triggered deep concerns. About 89% of the respondents say the politicization of data and cybersecurity issues in the EU has hurt their business operations.
EU’s new Foreign Subsidies Regulation, which took effect this year, have sparked an outcry for unfairly targeting Chinese companies. More than 70% of the Chinese companies surveyed said they were negatively affected by the regulations. According to the report, only half of the Chinese companies reported revenue growth, a sharp decline from 94% in the previous year. Despite the mounting challenges, most Chinese companies still see potential in the EU market. About 55% of the Chinese companies remain optimistic about the medium- to long-term prospects for China-EU trade and economic relations. The report offers some 300 recommendations that cover a wide range of areas from a fair and open market, and a more predictable business climate, to stopping the politicizing of business issues and including Chinese companies in the 6G research collaboration, the China Daily reports.
