Zhang Yu

JeniZhang13@163.com

EUROPEAN companies are more committed than ever to South China as an investment destination, according to the Business Confidence Survey 2021 released by the South China Chapter of the European Union Chamber of Commerce in China (EUCCC) on Friday.

According to the report, 90 percent of the respondents say that they have no plans to relocate their business outside the region, and only 6 percent are considering relocating to other markets in three years.

Klaus Zenkel, the chamber’s South China Chapter chairman, said that European enterprises are set on deepening their exposure to the Chinese market.

According to the survey, 87 percent of the chamber’s members say they would choose South China to expand their current business, and 47 percent show an optimistic outlook on the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).

“As China moves into its next phase of development, European companies in South China have significant contributions to make, particularly in advanced manufacturing and low-carbon solutions and technologies,” said Zenkel.

Zenkel mentioned that Shenzhen is a strong driver of innovation in South China. “We have about 100-120 member firms in Shenzhen, mostly health care companies. It is a city that never stops growing and an ideal place for startups.”

Despite the increased commitment, the report reveals that European firms still face many challenges, such as human resources, both in finding local and global talents. Nearly a third of the firms have been trying to address the labor shortage by offering higher salaries, while 23 percent are aiming to solve this by increasing automated processes.

Additionally, many European companies have urged more coordination among local government departments and better access to information in English.

Published annually since 2004, the survey has enabled the EUCCC to build a rich data set that serves as a broad indicator of how European companies judge the business environment in China.

China-EU trade jumped 26.7 percent from a year ago to reach 2.52 trillion yuan (US$390.52 billion) in the first half of 2021, data from the General Administration of Customs showed.