World

European companies are both 'looking east' and 'investing east'

2026-02-04   

Since 2025, China Europe trade and investment have achieved stable and healthy development, and the investment boom of European companies in China continues to heat up. According to data from the Chinese Ministry of Commerce, UK investment in China is expected to increase by 15.9% and Switzerland by 66.8% in 2025. According to a report by the German Institute for Economic Research, Germany will increase its investment in China by approximately 7 billion euros in 2025, a growth of over 55% compared to 2024 and the highest level since 2021. From the chemical industry to precision manufacturing, from the automotive industry to biotechnology, the European industry continues to deeply cultivate the Chinese market, expand production lines, establish research and development centers, and increase investment. About 25% of European companies in China are shifting more production processes to China. Recently, the French Air Liquide Group announced an investment of 25 million euros to electrify the Yulin air separation plant in Shaanxi. After the project is completed, it will achieve dual benefits of emission reduction and production increase. Zeiss Group in Germany has clearly stated that it will focus on expanding its business in the Yangtze River Delta and the Guangdong Hong Kong Macao Greater Bay Area in the next five years. Martin Fischer, President of Zeiss China, bluntly stated that the group is using a "localized research and development+industrial chain collaboration" model to accurately connect with market demand and deepen integration with China's industrial ecology. According to an article in the Financial Times, "a complete industrial chain ecosystem, continuously upgraded manufacturing capabilities, and a super large market together constitute the strong attraction of the Chinese market to European companies. More and more European companies are looking east with a more pragmatic attitude." Currently, the confidence index of European companies in the Chinese market is constantly rising. The latest Business Confidence Survey Report on British Enterprises in China: 2025-2026, released by the British Chamber of Commerce in China, shows that British enterprises in China have reached a peak in their development expectations for 2026 since 2020, and nearly 30% of them plan to increase their investment in China in the coming year. As of July 2025, the UK has established over 13000 enterprises in China, with actual investment exceeding 35 billion US dollars. The research conducted by the European Union Chamber of Commerce in China also confirms this trend: about 25% of European companies in China are shifting more production processes to China for localized operations, which is twice the proportion of companies transferring production capacity to other countries, highlighting the important position of the Chinese market in the global strategic layout of European companies. From the perspective of investment, high-end manufacturing and technology intensive industries have become the main areas for European investment in China. According to data from the European Union Chamber of Commerce in China, 80% of European pharmaceutical companies in China choose to expand their production layout in the Chinese market, with the proportions in the fields of machinery manufacturing and medical equipment reaching 46% and 40% respectively. Analysis suggests that these industries have extremely high requirements for supply chain stability, large-scale production capacity, and quality control systems. The collective choice of European companies is not only a high recognition of China's manufacturing strength, but also reflects China's continuous rise in the global industrial division of labor. China is an ideal choice that combines cost-effectiveness and industrial ecology. In November 2025, the first batch of products of the core equipment of the Zhanjiang integrated base invested and constructed by German chemical giant BASF were successfully put into operation, marking the key progress of the company's largest single investment project to date. BASF Group's Chairman of the Executive Board, Kelly, stated, "The Zhanjiang base is a key layout for BASF to strengthen its core competitiveness, providing solid support for us to deeply cultivate the Chinese market and share development opportunities." "For the global supply chain, China is an ideal choice that combines cost-effectiveness and industrial ecology. ”Yan Ci, President of the European Union Chamber of Commerce in China, stated that China's competitive advantage has been upgraded from the traditional cost advantage to a comprehensive advantage of "complete industrial chain supporting+large-scale production capacity+mature industrial infrastructure". As the only country in the world with all industrial categories in the United Nations Industrial Classification, China's full chain supporting capabilities from core components to end products can significantly shorten production cycles and reduce operating costs for enterprises; The super large scale market not only efficiently digests production capacity, but also quickly responds to demand and drives product iteration, which is the key support for multinational enterprises to consolidate their global competitiveness. Attracted by the comprehensive advantages of the Chinese market, more and more European companies no longer view China solely as a sales market, but as an export base with global competitiveness. In August 2025, Bosch Group of Germany signed a memorandum of understanding with Suzhou Industrial Park, announcing that it will invest approximately 10 billion yuan in the park over the next five years to develop and manufacture advanced intelligent driving assistance systems and intelligent cockpit software and hardware products. The Bosch products produced here are not only supplied to the Chinese market, but also exported to multiple regions around the world. Stefan Harten, Chairman of the Board of Directors of Bosch Group, stated that many cutting-edge technologies have been developed and applied in the Chinese market, which not only helps Bosch's development in China, but also assists companies in responding to global market demands more quickly. In the field of technology research and development, the Chinese market has also become an indispensable and important sector in the global R&D network of European enterprises. Former President of the European Union Chamber of Commerce in China, Woodck, pointed out that the Chinese market is crucial in helping European car companies transition from fuel vehicles to new energy vehicles, using the automotive industry as an example. Huo Feiming, Chairman of the Board of Directors of the North China and Northeast Region of the China Germany Chamber of Commerce, said, "Establishing mature partnerships with Chinese enterprises, focusing on research and development and rapid industrialization, and the third wave of localization has become the key for German enterprises to consolidate their market position in China and promote local and even global innovation and development." The deep integration of China Europe industries in investment and cooperation shows that since 2021, EU manufacturing direct investment in China has continued to grow, and in the second quarter of 2024, EU manufacturing green space investment in China reached a historical high of 3.6 billion euros; According to data from the Chinese Ministry of Commerce, as of the end of 2024, the cumulative actual investment of EU enterprises in China has exceeded 150 billion US dollars; The survey results released by the German Chamber of Commerce in China in December 2025 show that 93% of German companies in China plan to continue to deepen their presence in the Chinese market, and 53% of companies have stated that they will increase their investment... These data reflect the strong resilience of China Europe economic and trade cooperation. From continuously reducing the negative list for foreign investment access to fully implementing national treatment, from strengthening intellectual property protection to continuously optimizing the business environment, China's series of pragmatic measures have provided a stable, transparent, and predictable development environment for European enterprises. Since entering the Chinese market in 2014, the German Simbel Kemp Group has expanded its Qingdao base three times, and the fourth phase of the project is scheduled to start in 2026. The growth potential of the Chinese market is evident to all, and we are willing to share the development dividends with continuous investment, "said Constantinos Carakolidis, CEO of its Qingdao company. In September last year, the largest production base of Danish company Danfoss Group in China, Zhejiang Haiyan Second Park, was officially put into use. The park is also one of the most important research and production bases in Danfoss Group's global layout. We firmly believe in the enormous potential and development opportunities of the Chinese market. The opening of Haiyan Second Park is a milestone in our implementation of the 'in China, for China' strategy and a powerful measure for us to continue to contribute to China's green future, "said Xing Jian, President and CEO of Danfoss Group. The deep integration of China Europe industries in investment and cooperation not only benefits both sides, but also injects valuable certainty into the uncertain global economy. According to the mid-2025 midterm survey report by the German Chamber of Commerce in China, 68% of surveyed German companies have engaged in overseas business cooperation with Chinese companies. Schneider Electric is deepening its cooperation with Chinese battery manufacturers and electric vehicle charging infrastructure suppliers, introducing China's advanced technology in energy storage and charging to European and other markets. Zhao Guohua, Chairman of Schneider Electric Group, believes that as China enters a new era of green innovation driven development, French and Chinese enterprises have broad cooperation space in the fields of technological innovation and green transformation. This cooperation not only benefits both parties, but also contributes important strength to global sustainable development. (New Society)

Edit:Yi Yi Responsible editor:Li Nian

Source:www.people.cn

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