On 17 October, European Chamber President Jens Eskelund led a delegation to meet with Guo Yile, Deputy Secretary General of the Guangdong Provincial Government, in Guangzhou.
The two sides engaged in an in-depth discussion on the opportunities and challenges for European companies operating and investing in Guangdong. Eskelund presented the European Business in China Position Paper 2024/2025, which contains over 1,000 recommendations aimed at improving the business environment for foreign and domestic companies in China. He highlighted key issues faced by European companies, such as declining profitability, reinvestment challenges and the shift in investment focus towards business resilience rather than growth. Eskelund also raised concerns about European companies’ difficulties with supply chain adjustments, access to green energy and cross-border data transfer, and particularly emphasised the challenges faced by small and medium-sized enterprises (SMEs) in South China. Klaus Zenkel, European Chamber vice president and South China Chapter chair, noted the region’s local issues, including the need for better access to green energy, clearer policies on cross-border data transfer and more effective implementation of talent attraction policies, such as the Greater Bay Area individual income tax incentives.
Guo acknowledged the significant role that European businesses, including SMEs, play in Guangdong’s economic development. She reiterated the province’s commitment to improving the investment environment and facilitating better access for foreign companies. Guo also emphasised the provincial government’s focus on addressing specific concerns such as carbon neutrality, innovation and technological advancement in the Greater Bay Area.
The meeting concluded with both sides agreeing to maintain a dialogue to address the needs and concerns of European businesses in the region, ensuring that Guangdong continues to be an attractive destination for foreign investment.
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 activities of the Forum, the annual publication of the Inter-Chamber SME Working Group Position Paper is the product of extensive feedback gathering from European SMEs in China conducted through the Inter-Chamber SME Working Group. The Position Paper is the main vehicle of the European Chamber and EU SME Centre for SME advocacy, as it contains the key concerns and recommendations from European SMEs on a given year. Read the 2023/2024 SME Position Paper here.
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