Although geopolitical tensions and tariff wars have pushed overall European business confidence in China to record lows, 72 percent of European Union Chamber of Commerce members remain confident about expanding their business operations in the southern part of the country.
This finding comes from the European Business in China Confidence Survey 2025, recently released by the EU Chamber of Commerce in China and cited by the English-language Guangdong new website, South.
Fabian Blake, vice president of the European Union Chamber of Commerce in China and chair of the South China Board, highlighted southern China’s significant manufacturing capabilities and evolving consumer market as key attractions. He also noted positive indicators of renewed engagement between China and the European Union at various levels, alongside the Chinese government’s clear intent to enhance the business environment for foreign investors.
Blake said that many European companies are particularly drawn to South China, attributing this interest partly to robust government support. “The government is doing a great job of engaging with key stakeholders in multinational companies to understand their requests,” he stated.
The high-tech manufacturing sector in Guangdong continues to be a primary draw for foreign investors. Blake identified industries such as the low-altitude economy and electric vehicles as receiving substantial government backing. He added that Shenzhen is widely recognised as the preferred destination for high-value-added technology industries within the high-tech sector.
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The Greater Bay Area (GBA) was lauded by Blake for its strategic location benefits. He described the GBA as “well set for the future,” commending its “one of a kind” cross-city connectivity projects.
Blandine Cressard, vice chair of the South China Board, further emphasised the GBA’s role in fostering regional synergy, stating that “The dynamics of the GBA attract people to the south.” Cressard also suggested that the GBA’s appeal is bolstered by proactive governmental efforts to engage with European companies, citing simplified permitting processes for smaller firms. She observed a growing positive trend among companies regarding developments within the GBA.
Beyond high-tech, the petrochemical and energy sectors are also experiencing sustained investment in South China. Blake noted that companies in these industries continue to allocate capital to the region, leveraging its strategic location and policy incentives.
Looking ahead, Blake advocated for greater harmonisation of policies among GBA cities to streamline operations for European businesses. Cressard echoed this sentiment, calling for “increased government-industry dialogue and better coordination between government departments.” She affirmed that the Chamber would continue to foster a close and constructive relationship with local authorities to facilitate these improvements.
The positive sentiments about the GBA contrasted with wariness regarding prospects in China overall. Some 71 percent of the 503 EU enterprises in the survey regarded China’s economic slowdown as one of the top three challenges for their future in the country, alongside Sino-US tensions and regional conflicts.
This article was drafted by AI before being reviewed by an editor.
