On September 30, 2022, the China Chamber of Commerce to the EU (CCCEU) and global consultancy Roland Berger jointly released the chamber’s annual report on the development of Chinese enterprises in the EU. It is based on two-month surveys and intensive interviews of some 150 Chinese companies and organizations. The findings are an eye-opener to anyone who does business with China.
Despite headwinds and challenges in 2021, the aggregate revenues of Chinese companies in the EU were estimated to reach 163 billion euros, meaning an increase of 8.4% yearly. This may seem like good news. However, business sentiment has dropped to a three-year low because Chinese companies are concerned about the EU’s one-sided trade tools and Brussels reducing reliance on its biggest goods-trading partner, China.
Although the smaller growth in the market, the European significance to Chinese companies has been rising, as agreed by more than 80% of respondents. The European market’s allure has been boosted by its vitality and China-EU’s complementary strengths. 70% of surveyed Chinese companies believe that their presence in the EU will benefit corporate global branding.
The paper also shines light on the other side of the market. It focuses on the EU’s ease of doing business in political, research, economic and industrial, human resources, infrastructure and support, and business service dimensions. Unfortunately it shows a downward trend. Behind the decrease lie the struggles of the surveyed Chinese enterprises, such as the EU’s overall policy, trade instruments, and relatively negative public opinion of Chinese enterprises. The geopolitical dynamics and the Covid-19 pandemic have taken their toll on the trust of doing business with China.
Do you want to learn more about the current state of the European-Chinese business market? Click here.