On 14 August 2024, Mr Fabian Blake, Vice Chairman of the European Chamber South China Board, and Ms Danica Mai, Vice Chair of the SME Forum, met with a delegation led by Ms Zhang Yan, Deputy Director General of Guangzhou CCPIT, at the European Chamber Guangzhou Office. The meeting, which lasted for two and a half hours, primarily focused on strengthening collaboration between the two parties and addressing the key challenges faced by European companies operating in South China.
During the meeting, Mr Blake highlighted concerns regarding the ambiguity of cross-border data transfer regulations, difficulties in accessing renewable energy necessary to meet global ESG commitments, and the challenges SMEs encounter in navigating local regulations and attracting suitable talent. Additionally, issues with the delayed implementation of GBA IIT in Guangzhou and the misalignment between European headquarters’ perceptions and the realities of operating in China were discussed.
The Chamber underscored the difficulties encountered by European SMEs in South China in recruiting highly skilled technical talent that aligns with their specific needs. This issue is particularly acute in areas such as manufacturing and technological innovation. Although many businesses have initiated collaborations with vocational schools to address this talent gap, the outcomes have been less than satisfactory, resulting in a substantial shortfall in the necessary technical expertise. Consequently, companies are strongly urging the government to allocate more resources towards talent development to help bridge this gap and support their operational demands.
The meeting also touched upon the current supply of green energy, which is insufficient to meet the needs of companies in South China. While multinational corporations (MNCs) have the advantage of signing direct purchasing agreements with green energy providers, SMEs often struggle due to a lack of access to adequate information and channels for acquiring green energy. Given that many SMEs are required to meet stringent green energy standards set by their clients—predominantly MNCs—this issue could potentially lead to the loss of key clients. Therefore, there is a pressing need for improved access to green energy resources for SMEs.
Ms Zhang Yan expressed strong support for these concerns and emphasised that Guangzhou CCPIT will actively cooperate with relevant government departments to clarify regulations on data transfer and accelerate the implementation of GBA IIT policies in Guangzhou. Both parties agreed to work closely on talent development, environmental sustainability, and fostering a more favourable business environment for European enterprises in South China.
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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