Chinese companies still see promise in EU despite de-risking - survey

Boyd Services

14/11/2023 15:00

By Philip Blenkinsop
       BRUSSELS, Nov 14 (Reuters) - Most Chinese companies
operating in the European Union are feeling a pinch from the
bloc's de-risking strategy, but still see more opportunity than
challenge in Europe's green and digital transitions, according
to a survey published on Tuesday.
    The survey for the China Chamber of Commerce to the EU,
conducted by consultants Roland Berger, gauged the views of 180
Chinese enterprises in the EU, including telecoms and smartphone
companies Huawei  HWT.UL  and ZTE  000063.SZ , electric vehicle
maker BYD 002594.SZ , COSCO Shipping and China's largest banks.
    Their overall rating of the EU's business environment fell
for the fourth consecutive year, with views of the political
landscape declining most steeply.
    Some 72% of respondents said their business operations had
been negatively impacted by the EU's de-risking strategy,
particularly semiconductor and telecoms suppliers. The strategy
partly seeks to reduce EU dependence on China, especially for
minerals and products required for its green and digital
transitions.
    China processes nearly 90% of rare earth elements and 60% of
lithium globally and has announced export restrictions for other
key materials - gallium, germanium and graphite.
    A number of Chinese companies felt the EU had become more
unfair in terms of single market access, import tariffs, public
procurement opportunities and scrutiny of investments. The EU is
also looking into possible tariffs on Chinese electric vehicles.
    However, despite these challenges, 83% of respondent
companies said they still had faith in the EU market and would
continue to expand their presence.
    On the EU's transition to a greener and more digital
economy, most companies expressed optimism that China-EU
cooperation and technology collaboration would intensify in the
coming years.
    About 90% replied that they saw more opportunities than
challenges in green and digital fields.
    The report also noted that bilateral trade was continuing to
grow, reaching 857 billion euros ($917 billion) in 2022, making
the EU and China each other's second-largest trading partner.
    The EU has said it wants a more balanced relationship with
China and that its trade deficit of about 400 billion euros is
partly due to Chinese restrictions on European companies
compared with an EU market that is largely open.   
($1 = 0.9343 euros)

 (Reporting by Philip Blenkinsop; Editing by Emelia
Sithole-Matarise)
 ((philip.blenkinsop@thomsonreuters.com; +32 2 585 2869:
@reutersPhilB;))