On June 30th, the China Council for the Promotion of International Trade held a regular press conference to release the "EU Business Environment Report 2025". The report indicates that during the past year, Chinese and European businesses have actively interacted and communicated, achieving fruitful cooperation and increasing their willingness to collaborate. Most Chinese enterprises in Europe gave positive evaluations of the EU's business environment. However, the report also highlighted issues such as an increasing tendency towards "overbroad security measures" in the EU, increased trade and investment barriers, and rising production costs for enterprises.
China Council for the Promotion of International Trade spokesman Wang Yifei stated at the meeting that many Chinese enterprises in Europe generally hope that China and Europe can resolve the issues arising from economic and trade cooperation through dialogue and consultation. At the same time, they also hope that Europe will provide a fair, just, and non-discriminatory business environment for Chinese enterprises operating in Europe.
This report, compiled and published by the China Council for the Promotion of International Trade for 8 consecutive years, shows that in 2025, there will be active interactions and exchanges between Chinese and European businesses, with fruitful cooperation and increased willingness to cooperate. According to survey data, 53% of the surveyed Chinese enterprises have a positive view of the business environment in the EU, and 48.8% of these enterprises plan to increase cooperation in supply chains with EU enterprises.
From the perspective of industry concerns, Chinese-funded enterprises show a high interest in the areas of the EU's digital economy, finance, and green economy. Among them, 50.6% of the surveyed enterprises believe that the EU's digital economy rules and governance systems are relatively well-established, and 47% believe that the size of the digital economy market is significant. In the financial sector, 64.5% of enterprises recognize the internationalization of the EU's capital markets, and 54.8% believe that the EU has rich experience in sustainable finance.
However, Chinese-funded enterprises interviewed also reported issues such as an increasing tendency towards ‘pan-safety’ in the EU, increased trade and investment barriers, and rising production costs for enterprises. The surveyed companies generally pointed out that the green industry in the EU has promising prospects. However, dense green regulations significantly increase market access and operational costs for foreign-funded enterprises. In particular, the implementation of the EU Carbon Border Adjustment Mechanism has increased operational costs and business uncertainties for these enterprises.
June 30th, the China Council for the Promotion of International Trade held a regular press conference. The website of the China Council for the Promotion of International Trade
In this context, Wang Yifei said that many Chinese companies hope that China and Europe will work together through dialogue and negotiation to address the issues in Sino-Europe economic and trade cooperation. They also hope that Europe will provide fair, just, and non-discriminatory business environments for Chinese enterprises operating in Europe.
Almost at the same time, new progress was made in the Sino-European economic and trade consultations. According to the website of the Ministry of Commerce of China, on the 29th, Minister Wang Wentao of the Ministry of Commerce held the first meeting of the Sino-European Trade and Investment Consultation Mechanism with European Commission Trade and Economic Affairs Commissioner Shefcovich at the EU headquarters, and they issued a joint statement after the meeting.
The two sides held comprehensive, in-depth, and constructive discussions regarding important Chinese-EU economic and trade issues. They confirmed the establishment of a formal China-EU Trade and Investment Consultation Mechanism, which will include four main sections: trade and investment balance, export control, intellectual property rights, and the World Trade Organization. Additionally, a joint monitoring mechanism was established.
Wang Wentao emphasized that China is not the root cause of the problems faced by the EU, but a partner in solving these problems. The relevant economic and trade measures taken by the EU and the restrictions imposed on China have seriously affected normal economic and trade cooperation between China and the EU, as well as the stability of global supply chains. He urged the EU to consider the overall situation of economic and trade relations between China and the EU, pay attention to the serious concerns of China, and avoid the escalation of economic and trade frictions. China is willing to strengthen dialogue and consultation with the EU through the Sino-EU trade and investment consultation mechanism, properly resolve differences and frictions, promote practical cooperation, and drive upward the balance of Sino-EU trade relations.
Shevkovic said that China is a key economic and trade partner of the EU. The EU believes that it is necessary to strengthen contacts and dialogues with China, without any intention of escalating trade disputes. The EU pays close attention to the issue of trade balance and is willing to enhance dialogue and consultations with China under the EU-China Trade and Investment Consultation Mechanism. The EU aims to manage differences, expand exports to China, and promote a more balanced and stable development of EU-China economic and trade relations.
It is noteworthy that after this meeting, both sides also instructed their working groups to accelerate the negotiation of specific issues in preparation for subsequent mechanism meetings. The British ‘Financial Times’ pointed out that this is a ‘rare’ joint statement between China and Europe, marking the official launch of the related negotiation mechanism.
At a macro level, external observers generally believe that the industrial competitiveness within the EU is declining, protectionist trends are on the rise, and policies towards China are becoming more tough. The EU not only continues to discuss issues such as 'overcapacity', but also tries to strengthen barriers to domestic industries in areas such as subsidies and government procurement.
The Chinese side has repeatedly emphasized that it will take necessary countermeasures against any measures that harm its own interests. The Financial Times also mentioned that this month the Chinese side canceled two important diplomatic meetings with the European Union, which some European officials saw as a sign of an escalating tension.
However, according to analysis by Bloomberg in the United States, the European Union still faces real constraints in its policy towards China. Any unilateral restrictions could trigger countermeasures from China, and this could affect the EU's chances of entering this crucial market. In such circumstances, the EU is temporarily inclined to manage differences through negotiation mechanisms.
