On 23rd September, the European Union Chamber of Commerce in China released its European Business in China Position Paper 2021/2022 (Position Paper), its most important publication and the cornerstone of its annual advocacy plan. Compiled by its 35 working groups and sub-working groups over a six-month period, the 930 constructive recommendations contained in the Position Paper illustrate both the depth of the challenges faced by European companies in China and their commitment to supporting the improvement of the business environment.
Despite the many difficulties experienced in 2020 due to the COVID-19 pandemic and increasing geopolitical tensions, European businesses in China did well overall, and remain firmly committed to the market. However, while business opportunities still remain, signs that China is turning inward—as can be seen in its 14th Five-year Plan’s (14FYP’s) aim to increase self-reliance, and even achieve self-sufficiency, in parts of the economy—are a real cause for concern for foreign-invested enterprises. European companies are unsure about the extent to which they will be able to contribute to China’s future growth, with some fearing market exit, and there are now doubts over China’s future growth trajectory.