China-EU Photo: VCG

Chinese businesses in the EU urged the bloc to create a fair, transparent and predictable market environment for foreign enterprises, according to a report released by the China Chamber of Commerce to the EU (CCCEU) and global consultancy Roland Berger that was shared with the Global Times on Monday.

Based on a four-month survey and in-depth interviews with around 200 Chinese businesses in the EU, the report, titled "Facing Challenges, Forging Ahead: CCCEU Report on the Development of Chinese Enterprises in the EU 2024/2025," published on Monday, calls on the EU to respect the global division of labor in supply chains, use trade tools with caution and avoid overemphasizing "economic security."

Monday's report highlights a continued deterioration in the business environment for Chinese enterprises in the EU, with overall ratings falling for the fifth year in a row.

In 2024, Chinese companies rated the EU's business environment at 62 points, a sharp decline from 73 points in 2019. Survey data shows that 68 percent of respondents believe the business environment has worsened over the past year, with over half claiming the EU market is no longer "fair and open."

Over half the respondents reported experiencing "differentiated treatment," the report further noted.

Chinese businesses urged the EU in the report to create a fair, transparent and predictable market environment for foreign enterprises. Despite the EU's commitment to "fair market principles," 64 percent of Chinese enterprises felt they were being treated differently due to their Chinese origin, the report said.

The latest report came as China and the European Commission have been in intense talks over the bloc's decision to impose additional tariffs on Chinese electric vehicles (EVs), a move that has drawn strong and wide opposition from some officials and industry representatives even from within the bloc.

Commenting on the matter, Monday's report noted that the EU's decision to take anti-subsidy measures against Chinese battery electric vehicles (BEVs) will have negative impacts including to the corresponding industry of the EU.

Chinese companies said the EU's countervailing investigation into new BEVs from China, the object of extensive press coverage in the past year, would damage the EU's industry environment, the report said. Chinese companies urged the two sides to reach a fair and mutually acceptable agreement as soon as possible based on a minimum price commitment, according to the CCCEU.

Companies also called for a price commitment agreement to eliminate high anti-subsidy tariffs, the Chinese chamber said.

This report reflects concerns of some Chinese enterprises regarding investment in Europe and also highlights the current environment faced by both China and the EU, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Monday. 

On the one hand, industrial and supply chain relationships between China and the EU remain quite close, with many Chinese companies choosing to invest in the EU, and still hoping to gain long-term development capabilities from investment cooperation and seeing the potential for growth in the European market, Zhou said. On the other hand, our enterprises are also concerned about uncertainties caused by trade frictions and trade protectionism, the expert said.

"In order to put Europe's economy on the path of recovery and sustainable growth, it is necessary to provide a predictable environment for foreign enterprises, especially Chinese enterprises, reduce unfair accusations and defamation against Chinese companies, and apply the principle of national treatment to Chinese enterprises," Zhou said, noting that these are all crucial areas where the EU needs to put in greater effort, as this is the path to win-win cooperation.

Despite these challenges, Chinese enterprises remain optimistic about the EU's long-term market potential, according to the report. About 21 percent of respondents consider the EU their most important market outside China, with 66 percent expecting its strategic importance to grow in the next 1-3 years. 

The survey also revealed that 55 percent of Chinese enterprises remain optimistic about the medium- to long-term prospects for China-EU trade and economic relations, particularly in areas such as green cooperation and digital transformation.

The economic ties between China and the EU remain strong, said Liu Jiandong, chairman of the CCCEU, on Monday at the online launch event for the report, citing that daily trade exceeded 2 billion euros ($2.11 billion) in 2024.

"These [Chinese] companies contribute to EU tax revenue, job creation and innovation," Liu said, noting that China and the EU have complementary advantages in strategically important areas for the future, indicating vast potential for joint development.