Chongqing – As China continues to navigate a period of economic transformation, European small and medium-sized enterprises (SMEs) are actively exploring new avenues to strengthen their presence in the world's second-largest economy. Increasingly, many are shifting their focus inland to dynamic cities like Chongqing, where a growing range of opportunities awaits.

On June 10, Chongqing hosted a dedicated forum on policies, regulations, and best practices to support European small and medium-sized enterprises (SMEs) seeking to expand or optimize their operations in China. During the forum, Ester Cañada Amela, Advocacy Manager of the EU SME Centre, shared insights from the 2025 European Chamber Business Confidence Survey.

Ester Cañada Amela, Advocacy Manager of the EU SME Centre, presented the latest findings from the 2025 European Chamber Business Confidence Survey. (Photo/EU Chamber of Commerce Southwest China Chapter)

The survey reflects both the evolving complexity of doing business in China and the continued resilience of European companies. While 73% of surveyed firms acknowledged that market conditions have become more challenging over the past year, citing issues such as market access, legal enforcement, and financing, the survey also highlighted areas where progress is being made. 

Inclusive lending to SMEs rose by 12.4% as of February 2025, and European companies are gaining better access to China's capital markets via platforms such as the Beijing and Shanghai STAR stock exchanges.

Amid a changing global landscape, Raquel Ramirez, Chairwoman of the EU Chamber of Commerce Southwest China Chapter, called for efforts to depoliticize the business environment. She believed that long-term trust and a stable environment are the keys that enable businesses to thrive. 

Green energy has emerged as one of the most promising areas for EU-China cooperation. "The EU will be the first economic bloc in the world to impose a carbon tax," she explained. "This presents a unique opportunity for EU-China collaboration in green technology and sustainable development."

She also pointed to cities like Chongqing and Chengdu as increasingly attractive destinations for European investment. "Southwest China has proven to be highly responsive to business needs, with significant potential for long-term growth," she added.

EU flags at the European Commission headquarters in Brussels, Belgium. (Photo/Xinhua)

To encourage further European SME investment, Chongqing has introduced a comprehensive package of support policies, including affordable office space, targeted subsidies, and enhanced financing channels. 

Among the key initiatives is the Chongqing SME Public Service Platform, which offers foreign SMEs a comprehensive range of services, including policy consulting, legal assistance, talent recruitment, and business matchmaking — all designed to help international firms localize and scale up their operations more efficiently.

Data shows that globally, SMEs make up more than 90% of all businesses and contribute around 50% to global GDP growth, highlighting their vital role in the world economy.

As more European SMEs look beyond China's traditional coastal hubs, Chongqing is positioning itself as a strategic inland alternative, offering access to regional supply chains, pro-business policies, and an expanding consumer base. With continued policy support and an increasingly diversified business environment, inland cities like Chongqing are set to become new frontiers for European enterprise growth in China.