China-EU economic ties resilient despite global trade woes

Vigorous cross-border business

With the newly-injected 2 billion euros ($2.37 billion), Germany's Volkswagen Group, the largest auto manufacturer in Europe, announced in May the decision to expand investment in China to develop its electric vehicle business.

Noting that China is the world's biggest market for e-mobility, Stephan Woellenstein, CEO of Volkswagen Group China, said "by opening up the market, China is giving Volkswagen new business opportunities."

Sharing the common stance with the EU of upholding multilateralism, and resisting unilateralism and protectionism, China sticks to opening-up with concrete actions, providing European enterprises with flourishing opportunities in the post-pandemic era.

"The COVID-19 pandemic did not stop the Chinese government from promoting a new round of high-level opening-up," said Li Jian, senior vice president of Danone Greater China, citing the implementation of the country's foreign investment law, as well as pilot projects in free trade zones and cross-border e-commerce zones.

The French food giant announced in July an investment of 100 million euros ($118 million) to strengthen specialized nutrition business in China, including the opening of a research center in Shanghai and the acquisition of local infant milk formula capabilities.

The sheer sizes of both China's economy and the European common market cannot be neglected by entrepreneurs of either side, said Xin Hua, executive deputy director of the Center for European Union Studies at Shanghai International Studies University.

In his view, the already-intertwined bilateral networks of production, trade and investment are based on naturally formed divisions of labor, and have already brought tremendous benefits to businessmen, investors and workers from both sides.

A recent survey by the European Union Chamber of Commerce in China showed that European companies in China reported no significant change in plans to redirect current or planned investments elsewhere.

In the meantime, the Brussels-based China Chamber of Commerce to the EU (CCCEU) saw continuous expansion of its membership, mirroring the steady pace of Chinese enterprises' investing and developing in Europe.

"Europe remains a key destination for Chinese enterprises," said CCCEU Chair Zhou Lihong.

A recent survey jointly conducted by the CCCEU and consulting firm Roland Berger indicated that Chinese companies in the EU are willing to increase investment if the business environment in the bloc gets better.