Zhang Yu

JeniZhang13@163.com

OVER seven in 10 European enterprises are still keen to expand their business in South China.

This was a key takeaway from the regional launch of the European Union Chamber of Commerce in China’s “European Business in China Confidence Survey (BCS) 2025” held in Shenzhen yesterday, featuring insights from key figures within the chamber.

Despite facing challenges that have pushed overall European business confidence in China to record lows, South China continues to hold significant allure, particularly for high-tech industries centered in Shenzhen, according to the survey.

While acknowledging the broader dip in sentiment driven by economic headwinds, market access hurdles, and regulatory barriers, the discussion highlighted South China’s distinct strengths.

Fabian Blake, vice president of the European Chamber of Commerce in China and chair of the European Chamber South China Chapter, noted the local governments’ efforts in engaging with multinational corporations. “The governments are doing sort of a great job of engaging with key stakeholders in multinational companies to understand the economic landscape,” he stated.

Blake pointed specifically to Shenzhen’s premier status in the high-tech sector. “When it comes to high tech, everyone knows Shenzhen is the preferred destination, especially for industries centered on high-value-added technologies,” he explained.

He also mentioned substantial investments flowing into Guangdong, particularly in petrochemistry and energy. “We see many [European] companies with a nationwide presence in China continuing to invest in South China.”

However, Blake warned that the prevailing difficulties are prompting companies to adjust. “Companies are adjusting their operational and investment strategies following doing business in China becoming more challenging.” He urged swift action: “Our message to the Chinese authorities is clear: Act now before subdued business confidence becomes the new normal.”

Blandine Cressard, vice chair of the European Chamber South China Chapter, noted a slight increase in the appeal of eastern China but underscored the enduring appeal of South China, partly due to the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). “Companies are increasingly more positive and appreciative of what is happening with the GBA.”

She stressed the need for increased government-industry dialogue, better coordination between departments, and a more transparent policy environment.