China remains stable, predictable investment destination for European businesses, despite US tariffs: EU chamber

Jens Eskelund, president of the European Union Chamber of Commerce in China, addresses a press conference in Beijing on May 8, 2025. (Yin Yeping/GT)

China can turn crisis into opportunity and demonstrate that it is a stable and predictable investment destination, said the head of the European Union Chamber of Commerce in China (European Chamber) in Beijing on Thursday. The comment underscored the continued commitment of European businesses to the Chinese market despite global headwinds, highlighted by the US tariffs, a Chinese expert said.

The European Chamber conducted an online flash survey from April 17 to 27 to assess how its members have been affected by the recent escalation of tariffs and trade measures between the US and China. The survey received responses from 162 European companies in China, covering sectors such as machinery, automotive and auto components, professional services, and medical devices.

Similar to a 2018 chamber flash survey on the first US-China trade war, many chamber members have been able to mitigate the direct impacts of the tariffs, highlighting their pragmatism and adaptability - their "in China for China" strategy being a key factor in this regard, according to the European Chamber.

When the companies were asked whether their export supplies or goods from China to the US were affected by the US tariff hikes, 69 percent said there was no impact. The remaining 31 percent reported varying degrees of impact.

When asked how they had responded, or intended to respond, 25 percent of the surveyed companies said that they "have kept our prices the same," while another 20 percent said that they "have raised or intend to raise prices." Only 12 percent said that they had lowered or planned to lower prices.

"It is difficult to overstate how much uncertainty this trade war has created for our members," said Jens Eskelund, president of the European Chamber. "But we believe that China can turn crisis into opportunity and demonstrate that it is a stable and predictable investment destination," he noted.

Notably, the survey found that when companies were asked whether they had felt increased political pressure from external or non-business sources, 76 percent pointed to the US government.

According to the survey, 57 percent of the surveyed companies said "no changes, but we are monitoring the situation" in response to questions whether their strategy had changed or would change as a result of the US-China trade war.

"We probably [will have] the same number of European companies in China five years from now as we do today. When we talked to our members, there is still a very high level of commitment to the Chinese market. For many companies, China is the market where you need to continue to invest in order to remain competitive," Eskelund told the Global Times.

Despite the global trade tensions, highlighted by the US tariffs, China, in many ways, remains a significant market for European businesses. "It's the world's second-largest economy, and across a wide range of industries for many companies, China remains a core market, in particular, within manufacturing," Eskelund said.

On a further note, the European Chamber head said that for many European companies, China and Chinese manufactured products have remained core parts of global supply chains.

"I think European companies are still very much committed to maintaining their global sourcing in China, given that the capability of Chinese manufacturing remains one of the main areas where European companies will look for manufacturing," Eskelund said.

"For many companies, and certainly for European companies, if you're competing in the global marketplace and you have global supply chains, and if you are going to be able to compete on price and quality, China is still the place that you need to be," the chamber head noted.

He also expressed optimism about the growing interactions between China and the EU at the government level.

"The latest remarks from the European Chamber once again highlight the importance of the Chinese market in the eyes of foreign companies, especially amid today's complex global trade landscape," Zhao Junjie, a senior research fellow at the Institute of European Studies at the Chinese Academy of Social Sciences, told the Global Times on Thursday. He noted that European businesses' continued commitment to the Chinese market reflects the foresight and strategic vision of European entrepreneurs.

The European Chamber's survey coincided with the 50th anniversary of diplomatic relations between China and the EU this year, with both sides emphasizing their greater potential and willingness to deepen cooperation.

China and the EU enjoy complementary strengths and mutual benefits in economic and trade cooperation, forging a synergy that speaks for itself. Official data show that bilateral trade grew from $2.4 billion to $780 billion over the past five decades, the Xinhua News Agency reported.

China also leads in global green technology, advanced manufacturing, and digital infrastructure, areas that strongly resonate with the EU's goals of carbon neutrality and digital transformation, the report said.

Despite growing competition in China, many European companies are doing everything they can to enter the market. This reflects China's significant share of the global economy, its key role in global supply chains, and its position as a dynamic and vital market that complements the development of European businesses, Zhao said.