EU Chamber: Rising China-Europe Business Ties Strengthen Dialogue

(June 5, 2026) – Companies from China expanding into Europe are increasingly facing the same market access hurdles and regulatory scrutiny that European firms have long experienced in China. This shift might pave the way for more open dialogue between the two regions, according to representatives from the European Chamber of Commerce.

As businesses on both sides deal with similar obstacles, officials suggest that policymakers might find it easier to discuss reducing trade and investment barriers and establishing a fairer playing field. This insight was shared during a recent briefing on the European Business in China Confidence Survey 2026, conducted by the European Chamber of Commerce in China alongside consulting firm Roland Berger.

The increasing parity in business conditions may foster more constructive conversations around market access and investment policies, they added.

“It’s becoming somewhat symmetrical,” said Denis Depoux, Global Managing Director at Roland Berger. “European companies in China face restrictions and market access issues, even bans in some cases. Chinese companies in Europe are starting to see the same challenges.”

He viewed this trend positively, believing it helps create common ground. “That’s beneficial because it levels the playing field,” Depoux explained. “Both sides should engage in dialogue to lower barriers for everyone.”

Fostering Local Development

Jens Eskelund, President of the European Chamber, highlighted that Chinese companies operating in Europe are now “facing the exact same issues” that European firms have endured for years.

He emphasized that European companies have gained a foothold in China by providing local value through technology transfers, R&D investments, local supply chains, and tax contributions.

“We’ve transferred technology, moved our R&D here, localized supply chains, and paid taxes,” Eskelund noted. “Chinese companies in Europe should adopt similar strategies—contributing to local development through localized supply, R&D, and tax payments.”

He added that companies willing to commit to such practices would be welcomed. “If Chinese businesses come to Europe promising to create thousands of jobs, collaborate with local universities, and localize their supply chains, they will find a warm reception,” Eskelund stated. “It’s about the value being created, not just importing goods.”

China Developing Its Economic Toolkit

Regarding recent regulatory measures in China, including new rules on outbound investments and technology exports, Eskelund compared Beijing’s approach to tools used by the U.S. in similar situations.

“We’ve seen how effective American instruments have been in influencing other countries,” he said. “China, as a major power, seems to be developing its own strategies, which is understandable. We need some of that too.”

He pointed out that China has established regulatory channels through agencies like the National Development and Reform Commission and the State-Owned Assets Supervision and Administration Commission to oversee overseas investments by state-owned enterprises.

“The message seems positive: encourage investment in Europe and other markets, and show that your technology is understood,” he explained.

European firms have spent two to three decades transferring technology and establishing local operations in China, which helped develop capabilities in other markets. Eskelund said that controlling technology has gained strategic importance globally, offering countries an economic policy tool that was previously underappreciated.

Market Challenges and Innovation Shift

The 2026 Business Confidence Survey revealed that 68% of respondents found doing business in China more challenging over the past year, down from a peak of 73% in 2025.

“This doesn’t necessarily reflect growing confidence but rather what some describe as ‘crisis fatigue,'” Depoux explained. “Companies have adjusted their costs, supply chains, and product portfolios, making them more resilient to volatility.”

He noted that many European companies have become more accustomed to China’s evolving environment, adapting to fierce competition, tighter margins, and increased local rivals.

Eskelund described overall business sentiment as “less negative.”

Depoux further stated that China’s role for European firms is shifting—from a manufacturing hub and consumer market to a source of innovation.

“China is becoming a significant origin for product and core innovation, including research and development, with advancements not just in products but also in go-to-market strategies and services,” he said.

This trend is extending beyond automotive manufacturing to sectors like pharmaceuticals, specialty chemicals, and construction materials. Some automotive R&D teams remain in China even when they aren’t targeting the local market directly, according to Depoux.

“More companies across various industries are in China to monitor trends, conduct research, develop new products, and innovate—without necessarily aiming at the Chinese consumer,” he added.

Operational Barriers and Support for Small Businesses

Carlo Diego D’Andrea, Vice President of the European Chamber, shared that half of the survey respondents feel they are not making full use of available government support policies or subsidies.

He explained that barriers include lack of information, high eligibility thresholds, and complex administrative processes, which tend to disproportionately impact small and medium-sized enterprises.

“Large multinational companies will always be here,” D’Andrea said. “Our focus should be on creating an environment where SMEs can access subsidies and information more easily.” The chamber has also observed a decline in the presence of SMEs in Shanghai.

The survey highlighted operational challenges: 57% of respondents found relocating operations difficult, 54% faced obstacles in obtaining permits, 53% struggled with access to credit, and 65% cited cross-border money transfers as problematic.

D’Andrea reaffirmed that the message to policymakers remains consistent: opening up markets will incentivize companies to invest. “If they provide greater access, companies are willing to put in the effort,” he emphasized.