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.
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