On 20 May, a European Chamber delegation led by President Jens Eskelund held a meeting with Guangzhou Mayor Sun Zhiyang.
Eskelund introduced the latest foreign business trends and highlighted the achievements of Guangdong’s foreign businesses, which are estimated to be responsible for one ninth of the total global foreign trade volume. He said that the current stagnation in China-EU trade is not due to the business environment, but rather stems from European companies’ wait-and-see attitude toward global uncertainties. Eskelund added that he hoped the Chinese and European governments would try to enhance investment stability and predictability.
Chamber Vice President Klaus Zenkel and South China Chapter Chair Fabian Blake highlighted regional challenges, such as the necessity for improved green energy accessibility, more clarity on cross-border data regulations and efficient execution of preferential policies, including the Greater Bay Area Individual Income Tax policy.
Francine Hadjisotiriou, General Manager of the South China Chapter of the European Chamber, thanked the government for the opportunity to engage in dialogue and emphasised the growing concerns of uncertainty among members. While companies remain committed to China, they need more support, particularly in addressing the challenges faced by SMEs. She highlighted several key issues, including the need for financing support to help SMEs during their growth phase, rather than when they are struggling. She also praised Guangzhou’s policies on attracting foreign talent and encouraged continued support, particularly in terms of incentives for recruiting permanent employees. On intellectual property rights, she acknowledged China’s progress but noted that SMEs face high costs in enforcing their rights, often leading them to abandon legal action. Lastly, she emphasized the importance of access to green energy for companies, especially in achieving carbon neutrality. She concluded by expressing hope for a separate roundtable focused on the challenges unique to SMEs.
Sun said that he wanted the European Chamber to guide more European companies to invest and base themselves in Guangzhou, strengthen exchanges and cooperation, and expand areas of industrial cooperation. He pledged that Guangzhou would improve its business services and provide a long-term, stable and predictable development environment.
More on Our Advocacy Platform
The EU SME Centre’s advocacy activities aim at supporting the interests of European SMEs in China by creating a platform for exchanges between various relevant stakeholders and ensuring that the voices of European small businesses in China are heard. The Advocacy Platform operates in three major areas: information sharing, consolidation of feedback, and dissemination and outreach.
The European Chamber Small and Medium-sized Enterprise Forum comprises European SMEs operating in various industries in China who strive for improved operating conditions and exchange on practical business issues to foster their success in China. Advocacy actions for SMEs organised by the European Chamber and the EU SME Centre include regular working group meetings and policy meetings covering issues of specific relevance for European small and medium-sized businesses in China. Find out more on our Advocacy page.
Among the publications of our Advocacy Platform, the annual Policy Environment Report sets out to provide an overview of the most significant developments affecting SMEs operating in the country. Read SMEs in China: 2024 Policy Environment Report here >
