EU business groups expect to further tap into Chinese market potential, anticipate more govt support

European business groups are emphasizing the potential of the Chinese market this year, particularly in sectors such as new energy and healthcare, and anticipating more cooperation and government support in further tapping into these opportunities.

These comments were made ahead of China's annual two sessions, one of the most significant political gatherings each year, during which a more comprehensive picture of the world's second-largest economy last year will be reviewed while also laying a solid foundation for the economic recovery in 2024.

In a written interview with the Global Times, Jens Eskelund, president of the European Chamber of Commerce in China, said that the EU chamber has relatively modest expectations for the Chinese market this year while noting the potential of China's economy remains large.

In terms of the specific new potential that EU businesses intend to pursue, Eskelund said that the fight against climate change is one area where the EU's and China's interests significantly overlap, and where European companies have a wealth of expertise to bring to the China market.

China's aging population also creates opportunities and needs in the healthcare sector. Creating the right regulatory healthcare framework is necessary to both attract and reward innovation, while at the same time creating a sustainable and affordable management infrastructure, Eskelund said.

"China remains an important market for our member companies," Juha Tuominen, chairman of the FinnCham Beijing, told the Global Times, referring to the latest surveys last year in which Finnish companies' views on the Chinese market potential were positive.

The member companies of FinnCham represent a cross-section of industries, particularly when it comes to machinery, energy and digitalization. Moreover, booming cities such as Southwest China's Chengdu and Chongqing and Central China's Wuhan, Hubei Province, are attracting Finnish companies' attention, Tuominen said.

Healthcare and well-being are also new sectors where Finnish companies in China find opportunities, Tuominen said.

"For our members and Finnish companies, keeping sustainability and carbon neutrality high on the priorities list in China will be good news. In general, this situation is important to Finnish companies as they are among global leaders in sustainable technology and innovation across the board," the chairman said.

Speaking about the primary areas of interest for the upcoming two sessions, the heads of the foreign business chambers expressed expectations for more opening-up and support for foreign businesses.

Tuominen said that a key issue will be measures to boost consumption. "Naturally, we will be keeping an eye on what kind of government stimulus will be available to enhance business opportunities for our members," Tuominen said.

A topic of intense interest will be this year's GDP growth target, as "it will set the tone for business activities for sure," Tuominen said.

Eskelund said that the EU chamber will be interested to see how much emphasis will be placed on improving the business environment for foreign firms.

China has ramped up efforts to improve the business climate for foreign companies, with new policy guidelines being rolled out, and actual implementation of these policies has gradually landed on the ground.

Guidelines outlined by the State Council, China's cabinet, in mid-August 2023, put forward 24 specific measures in six areas to further optimize the foreign investment environment and intensify efforts to attract foreign investment.

Recently, China's Ministry of Commerce held a special roundtable on the implementation of the 24 pro-foreign investment measures, with the participation of representatives from more than 60 foreign-funded enterprises and nine foreign business associations, the ministry's spokesperson He Yadong said at a press conference on February 29.

During the meeting, the EU Chamber of Commerce in China said that the 24 measures are of great significance and exciting to European enterprises, and the implementation of relevant policies is worthy of affirmation, according to media reports.

On the whole, more than 60 percent of the measures have been implemented or made positive progress, and the vast majority of foreign-funded enterprises said that their confidence in investing in China was further enhanced, according to He.