Chongqing - On September 18, the European Union Chamber of Commerce in China (EUCCC) Southwest Chapter hosted the “The European Business in China - Business Confidence Survey 2023” launch event in Chongqing. European Chamber Vice President Massimo Bagnasco presents the key findings of this year’s survey.

The European Union Chamber of Commerce conducted a questionnaire survey of 570 member companies from February to March this year, forming this survey report. For the past 20 years, the report has provided comprehensive feedback on China’s business environment through annual surveys of EUCCC members in China.

The survey shows that over 90% of the surveyed companies currently plan to use China as an investment destination, with 59% considering China as one of the top 3 investment destinations, indicating the remarkable resilience and potential of China’s economy in the post-pandemic era.

China’s Attraction as an Investment Destination. (Graphics/ Naiyi Yang)

During the event, Mr. Bagnasco showcased the current state of European businesses in Southwest China, with a particular focus on Chongqing.

Positive Impact of  Chengdu-Chongqing Economic Circle

“(Building) Chengdu-Chongqing Economic Circle is a national strategy; no member said it could bring any negative impact. They are confident that it will have a positive influence,” stated Mr. Bagnasco. The survey revealed that, except for those unfamiliar with the Chengdu-Chongqing Economic Circle, all respondents believed it would bring favorable business outcomes.

The construction of the Chengdu-Chongqing Economic Circle has indeed brought about impressive achievements. According to the Chongqing Municipal Bureau of Statistics, in 2022, the GDP of the Chengdu-Chongqing Economic Circle reached ¥7,758 billion, an increase of 3% over the previous year, accounting for 30.2% of the western region. In the first quarter of 2023, the GDP reached ¥1.84 trillion, a year-on-year increase of 3.9%, up 0.9 % from the previous year.

Cross-border Trades Becomes Easier

“2022 was a difficult year for everyone,” said Mr. Bagnasco, “In that year, 14% of companies reported significant difficulties with cross-border trade. However, the situation has since improved due to the end of China’s zero-COVID policy. No companies report huge difficulties with cross-border trade, and many believe it has become easier than before.”

Moreover, the Chengdu-Chongqing RCEP Cross-border Trade Center, established recently, will further boost Chongqing’s trade potential. This center creates a cross-border trade platform for the manufacturing industry in the Chengdu-Chongqing Economic Circle. It facilitates the development of Chongqing’s open-up highland, making cross-border trade more accessible and convenient.

Chongqing Lianglu Guoyuan Port Comprehensive Bonded Zone. (Photo/ Chongqing Port and Logistics Office)

17% of Members Establish New Ventures

According to the survey, 17% of members have established new ventures in Southwest China in 2023, indicating a steady business expansion in the region. This trend is driven by the government’s favorable policies and the region’s growing economy. With Chongqing’s strategic location and well-developed infrastructure, the city offers many opportunities for growth and development.

The State Council released new guidelines to boost foreign direct investment in China in early August. In response, the Chongqing Municipal Commission of Commerce is working closely with relevant departments to formulate supporting measures and ensure the prompt implementation and refinement of policies.

The Commission also organized an explanatory session for foreign enterprises regarding this guideline, aiming to increase the appeal of foreign investment and enhance communication and cooperation with foreign enterprises. The ultimate objective is to create an improved investment environment for foreign enterprises in Chongqing, contributing significantly to the city’s long-term economic advancement and growth.

(Naiyi Yang, as an intern, also contributed to this report.)