On 15 August 2024, Mr Klaus Zenkel, Vice President of the European Chamber and Chairman of the European Chamber South China Board, addressed the GBA Development Business Conference.
In his speech, Mr Zenkel stressed the need to enhance the GBA plan’s effectiveness for European businesses. Drawing on critical insights from the Business Confidence Survey 2024, he noted a slight decline in national business confidence but highlighted an optimistic outlook within the Greater Bay Area (GBA), particularly in South China, where 61% of respondents found it easier to do business compared to the previous year, and 73% expressed intentions to expand their operations. However, he also pointed out that while the GBA plan is positively influencing regional development, its direct benefits to European companies, particularly SMEs, remain limited. Mr Zenkel presented several recommendations from European businesses to optimise the GBA plan, including clarifying opportunities for both Chinese and foreign companies, increasing bilingual information, and fostering public discussions to boost engagement and awareness.
Mr Zenkel underscored that there is considerable room for improvement in the clarity, predictability, and streamlining of administrative procedures at the local level. This has been a recurring concern among EU SMEs, who often find themselves entangled in bureaucratic processes that hinder their operations.
Another common issue raised by European SMEs is the difficulty in accessing and interpreting government policies, particularly those related to incentives and subsidies in the GBA. Many companies are unfamiliar with the channels through which these policies can be accessed, and there is a noticeable lack of clear, detailed explanations—especially in English. As a result, EU SMEs are advocating for more accessible policy information and comprehensive English-language explanations to better leverage the available government support.
Mr Chen Xiaofeng, President of Guangdong CCPIT, also addressed the conference. He emphasised the importance of leveraging China’s large market and enhancing international cooperation to build a higher level of an open economy system. Mr Chen underscored the need for deeper cooperation within the GBA area, particularly in aligning rules and mechanisms to support regional integration. He also stressed the significance of promoting the integrated development of industrial and innovation chains and facilitating the smooth talent exchange across the GBA. These initiatives are essential for accelerating the quality improvement and upgrading of traditional industries in the region.
At the end of the conference, Mr Zenkel met with Mr Chen and Mr Xing Wenju, Standing Committee Member and Vice Mayor of Dongguan, and shared with them the printed version of the Business Confidence Survey 2024, along with some key insights from the report.
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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