The Understanding China Conference (UCC) once again underscored the pivotal role of Small and Medium Enterprises (SMEs) within the European Union, which now represent 99.8% of all non-financial EU businesses and provide approximately two-thirds of employment. Recent estimates indicate that 600 000 SMEs are involved in exports, with 3% targeting China as a key market. Given the large number of European SMEs engaged with or operating in China, the conference’s morning session “China’s Economic Outlook” provided crucial insights into the latest developments and their implications for these enterprises.
Speakers highlighted China’s ongoing economic transition from a traditional growth model—dominated by housing, infrastructure, and consumption—to one driven by “new quality productive forces,” a term encompassing high-tech industries. This shift has been particularly evident in the downturn of the real estate sector, with investments now channelling toward manufacturing, directly affecting European companies operating in China. As China accounts for 29% of global manufacturing yet only 18% of global consumption, it has accumulated significant overcapacity, leading to an influx of low-cost exports to Europe and increasing competition within China’s domestic market.
Among the top challenges cited by European SMEs, intense competition stood out, alongside obstacles such as limited access to financing, burdensome administrative procedures, intellectual property protection concerns, difficulties in talent acquisition, and the complex requirements of both the green and digital transitions. Analysts emphasised that these transitions are key drivers for European SMEs in China, with green technologies and digitalisation offering potential opportunities despite their challenges.
Green technologies were extensively discussed, with analysts noting China’s dual role as the world’s largest CO2 emitter and the fastest-growing market for renewables. Solar and wind power now comprise 84% of all new grid-connected capacity in China in 2023. Additionally, digitalization remains a critical issue for SMEs, though conditions have recently improved following the Cyberspace Administration of China’s (CAC) Regulations on Promoting and Regulating Cross-border Data Flow, effective in March 2024. These regulations have eased compliance for SMEs by reducing the data export burden, improving the overall operating environment for European businesses navigating China’s complex regulatory landscape.
Agenda
About the Understanding China Conference
Executive Summary
1) Opening Remarks
2) China’s Economic Outlook
3) Policy Environment and Business Confidence
4) Green Technologies
5) Cybersecurity and Connectivity
6) IPR Protection: Recent Developments
7) Industrial Dynamics: Local Governments, Regional Clusters, Free-Trade Zones, High-Tech Zones
Read the report >
You can now stream the playlist of recorded sessions of the 2024 Understanding China Conference on the EU SME Centre’s YouTube channel and through our website. If you have follow-up questions about the topics covered, do not hesitate to get in touch with the EU SME Centre’s experts to receive free information.
Opening remarks
Keynote speakers:
– Bonifacio Garcia Porras, Head of Unit, DG for Internal Market, Industry, Entrepreneurship and SMEs, Directorate A, GROW Unit A2 – SMEs, European Commission
– Igor Kalinic, Head of Sector, European Innovation Council and SMEs Executive Agency – EISMEA, European Commission
Watch the Opening remarks on YouTube >
Watch on our website >
China’s Economic Outlook
Keynote speakers and panellists:
– Dan Wang, Ex-Chief Economist, Hang Seng Bank China
– Alicia García-Herrero, Chief Economist for Asia Pacific, Natixis (joining online)
– Jacob Gunter, Lead Analyst Economy
Panel discussion moderator:
Liam Jia, Team Leader, EU SME Centre
Watch the session China’s Economic Outlook on YouTube >
Watch on our website >
Policy Environment and Business Confidence
Keynote speakers and panellists
– Ester Cañada Amela, Advocacy Manager, EU SME Centre
– Luisa Santos, Deputy Director General, BusinessEurope
– Andrzej Juchniewicz, Head of Foreign Trade Office in Shanghai, Polish Trade and Investment (PAIH)
Watch the session Policy Environment and Business Confidence on YouTube >
Watch on our website >
Green Technologies in China
Keynote speakers:
– Massimo Bagnasco, Vice President, European Union Chamber of Commerce in China
– Wanyuan Song, Section Editor (China), Carbon Brief
SME Participants in the 2024 SME Business Mission organised by the EU SME Centre:
– Lukas Jasiunas, CEO, ecorbio
– André Godinho Luz, CEO and General Manager, Infinite Foundry
Watch the session Green Technologies in China on YouTube >
Watch on our website >
Cybersecurity and Connectivity
Keynote speakers:
Tom Nunlist, Associate Director, Trivium China
Simone Ciampi, General Manager, Exprivia IT Solutions Asia
Watch the session Cybersecurity and Connectivity on YouTube >
Watch on our website >
IPR Protection: Recent Developments
Keynote speaker:
Simon Cheetham, Team Leader, China IP SME Helpdesk
Watch the session IPR Protection on YouTube >
Watch on our website >
Industrial Dynamics: Local Governments, Regional Clusters, Free-Trade Zones, High-Tech Zones
Keynote speakers:
Alessio Petino, Business Advisor, EU SME Centre
Mirko Turrina, General Manager, Goglio (Tianjin) Packaging Co. Ltd.
Watch the session Industrial Dynamics on YouTube >
Watch on our website >
