In recent years, the economic landscape for European businesses in China has undergone significant changes. The “European Business in China–Business Confidence Survey 2024” reveals a complex picture of challenges and opportunities¹.

The Current State of European Business in China

The survey indicates a sense of pessimism among European companies, with 68% reporting a more difficult business environment compared to the previous year¹. This sentiment is attributed to a slower domestic economy, cited by 55% of respondents as their primary concern¹. The competition has intensified, with 42% of European businesses losing market share to domestic competitors¹.

Despite these challenges, the Chinese market remains vital for many European companies, with two-thirds reporting profits, although at the same level as in 2022, a year affected by stringent COVID-19 measures¹.

Trade and Investment Dynamics

Trade between Europe and China has seen remarkable growth over the past decades. By 2019, the volume of trade had expanded nearly eightfold to EUR 560 billion, with China becoming the EU’s second-most important trading partner³. However, recent statistics show a stabilization in EU exports to China and a drop in imports from China⁵.

WCHAM’s Perspective

The World Chamber of Commerce Platform (WCHAM) recognizes the importance of the Chinese market for European businesses. WCHAM believes that despite the current challenges, there are significant opportunities for European companies willing to adapt to the new market dynamics.

WCHAM advocates for a strategic approach that leverages China’s recent market openings in sectors such as financial services, cosmetics, food and ingredients, and cloud services¹. The “24 measures” and the extension of some IIT exemptions are positive developments that European businesses should capitalize on¹.

Moving Forward

To thrive in this evolving market, European businesses must invest in understanding the local market nuances and consumer preferences. Innovation, agility, and collaboration with local partners will be key to overcoming the competition and tapping into China’s vast market potential.

WCHAM is committed to supporting European businesses in China through advocacy, networking, and sharing best practices. Together, we can navigate the complexities of the Chinese market and continue to foster strong business ties between Europe and China.

For a detailed analysis and further statistics, please refer to the full 《European Business in China–Business Confidence Survey 2024》¹.

Source:

(1) European Business in China–Business Confidence Survey 2024. https://www.rolandberger.com/en/Insights/Publications/European-Business-in-China-Business-Confidence-Survey-2024.html.

(2) Mapping and recalibrating Europe’s economic interdependence with China …. https://merics.org/en/report/mapping-and-recalibrating-europes-economic-interdependence-china.

(3) China-EU – international trade in goods statistics. https://ec.europa.eu/eurostat/statistics-explained/SEPDF/cache/55157.pdf.

(4) 2023/2024 – wita.org. https://www.wita.org/wp-content/uploads/2023/09/EU_China_Business_Report_Exec.pdf.

(5) Two-thirds of European companies see revenues grow in China last year …. https://www.globaltimes.cn/page/202206/1268603.shtml.