Despite the challenges presented by global markets, 72% of members of the European Union (EU) Chamber of Commerce remain optimistic and are still willing to expand their business operations in South China, according to the EU Chamber of Commerce in China's "European Business in China Confidence Survey 2025," released recently.

Guangdong's high-tech sector lures EU investors

Fabian Blake, vice president of the European Union Chamber of Commerce in China and chair of the South China Board, emphasized China's vast manufacturing capacity and evolving consumer market.

Blake further highlighted positive signs of renewed engagement at all levels between China and the European Union and a clear intent from the Chinese government to improve the business environment for foreign investors.

Most European companies, he pointed out, are particularly interested in South China. Regarding the confidence of EU firms in South China, Blake believes that one of the key reasons lies in government support. "The government is doing a great job of engaging with key stakeholders in multinational companies to understand their requests."

He emphasized that the high-tech manufacturing sector continues to be the linchpin of Guangdong's appeal for foreign investors. "High-tech manufacturing remains the sector that has the most tailwind," he said, citing industries like the low-altitude economy and electric vehicles as focal points for government support.

"When it comes to high-tech, everyone knows Shenzhen is the preferred destination, especially for industries centered on high-value-added technologies," he added.

GBA boasts strategic edge and proactive governance

Blake lauded the strategic location benefits that the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) offers. "The GBA has really demonstrated that it's well set for the future," he said, praising cross-city connectivity projects as "one of a kind."

Blandine Cressard, vice chair of the South China Board, emphasized the GBA's role in fostering regional synergy. "The dynamics of the GBA attract people to the south."

Cressard suggested that the GBA's appeal also stems from proactive government engagement. "The government is doing a lot to attract European companies," she said, pointing to simplified permitting processes for smaller firms.

"We can see the trend that companies are more positive and more appreciative of what is happening within the GBA," Cressard added.

Calling for more dialogues

The petrochemical and energy sectors were cited as areas of sustained investment in South China. Blake highlighted nationwide trends, noting that companies in these industries continue to invest capital in the region, leveraging its strategic location and policy incentives.

When discussing future cooperation, he urged greater harmonization of policies between GBA cities to streamline operations for European businesses.

"Increased government-industry dialogue and better coordination between government departments are still needed," said Cressard. "To facilitate this, our Chamber will continue to maintain a close, constructive relationship with the local authorities," she said.