On 4 September 2024, Mr Fabian Blake, Vice Chairman of the European Chamber South China Board, attended and spoke at the Guangdong Foreign Enterprises Roundtable Meeting hosted by Mr Zhang Jinsong, Director-General of Guangdong Dofcom in Guangzhou. The roundtable aims to know the difficulties and concerns of enterprises and business entities and then provide corresponding solutions and suggestions.
During the speech, Mr Blake highlighted three key issues raised by European Chamber members: the implementation of the GBA Preferential Individual Income Tax Policy, Green Energy and Carbon Footprint management and operational challenges for EU SMEs. He also mentioned the upcoming 2024/2025 Position Paper launch and hoped that a meeting with the Governor of Guangdong could be arranged to discuss mutual concerns, strengthen collaboration, and work together to create a more favourable business environment for European companies operating in Guangdong.
Mr Blake reported that European companies are increasingly integrating decarbonisation strategies both in China and globally, relying heavily on renewable energy. While some SMEs have achieved carbon neutrality through purchasing green certificates, larger manufacturers prefer direct green energy purchases. However, challenges persist, particularly for SMEs in Guangzhou, as some struggle to meet green energy requirements due to infrastructure limitations. Additionally, there is concern that a shortage of green energy may prevent companies from meeting customer demands, particularly from European and American markets. Mr Blake conveyed the Chamber’s hope that the government will coordinate efforts to better understand green electricity development in Guangzhou and provide clearer access channels for enterprises.
On the matter of administrative challenges encountered by SMEs, Mr Blake noted that despite improvements in administrative efficiency, SMEs continue to face complex and time-consuming procedures, especially when establishing or closing operations. The approval process for the business scope of foreign-invested enterprises remains lengthy, as it involves extensive scrutiny from the State Administration for Market Regulation (SAMR), the Ministry of Commerce (MOFCOM), and other departments when special licenses are required. There is still significant room for improvement in terms of clarity, predictability, and streamlining administrative procedures at both national and local levels.
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.
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