Executive Summary
On the 50th anniversary of China–EU diplomatic relations, the China Council for the Promotion of International Trade (CCPIT) Academy has released its landmark EU Business Environment Report 2025 — the eighth consecutive annual survey of Chinese enterprises operating across all 27 EU member states. Drawing from a sample representing approximately 10% of all Chinese enterprises established in the EU, the report delivers a sobering assessment: 47% of surveyed Chinese enterprises believe the EU business environment needs improvement, while 36.7% rate it worse than 2024.
Yet beneath the headline dissatisfaction lies a more complex story. China–EU bilateral goods trade reached $828.1 billion in 2025, up 5.4% year-on-year. Cumulative bilateral investment stock has surpassed $280 billion. And despite mounting regulatory headwinds, 58.4% of Chinese enterprises plan to expand their EU operations — with profitability improving markedly (53% profitable, up 10.1 percentage points from 2024).
The report identifies three structural problem areas — “pan-securitization” of economic issues, escalating trade and investment barriers, and rising production costs — and provides chapter-by-chapter analysis across market access, export controls, competition policy, public procurement, digital economy, finance, and green economy, supported by granular enterprise survey data.
This article presents the report’s complete findings with all available data, so that policymakers, investors, and business strategists can understand the current state and trajectory of China–EU economic relations independently of the original document.
Table of Contents
- Part 1: The Big Picture — China–EU Trade & Investment at 50 Years
- Part 2: Overall Assessment — How Chinese Enterprises Rate the EU
- Part 3: “Pan-Securitization” — The Core Concern
- Part 4: Trade & Investment Barriers — A Rising Wall
- Part 5: Market Access — FDI Screening Tightens
- Part 6: Export Controls — Compliance Burden Surges
- Part 7: Competition Policy — The FSR Double Standard
- Part 8: Public Procurement — Discriminatory Treatment
- Part 9: Digital Economy — Cybersecurity as a Barrier
- Part 10: Finance — Unequal Access to Capital
- Part 11: Green Economy — CBAM and Regulatory Shock
- Part 12: Business Performance & Outlook
- Part 13: CCPIT’s Recommendations to the EU
- Key Takeaways
Part 1: The Big Picture — China–EU Trade & Investment at 50 Years
1.1 Trade: A Maturing Relationship
2025 marked 50 years of China–EU diplomatic relations, and the trade numbers tell a story of enduring interdependence.
Table 1: China–EU Bilateral Goods Trade — 2025
| Indicator | Value | YoY Change |
|---|---|---|
| Total Bilateral Goods Trade | $828.1 billion | +5.4% |
| China Exports to EU | $559.9 billion | +8.4% |
| China Imports from EU | $268.2 billion | -0.4% |
| Trade Balance (China Surplus) | ~$291.7 billion | — |
Source: CCPIT Academy, China Customs
The asymmetry is notable: Chinese exports to the EU grew strongly while EU exports to China contracted marginally. The EU remains China’s second-largest import source and export destination; China is the EU’s largest import source and fourth-largest export destination (excluding Hong Kong).
1.2 Trade Partners: Germany Leads, Eastern Europe Rises
Table 2: China’s Top 10 EU Trade Partners — 2025
| Rank | Member State | Share of China–EU Trade | Trade Volume (USD) |
|---|---|---|---|
| 1 | Germany | 25.5% | $211.12 billion |
| 2 | Netherlands | 13.8% | $114.3 billion |
| 3 | France | 10.1% | ~$83.6 billion |
| 4 | Italy | 9.2% | ~$76.2 billion |
| 5 | Spain | 6.6% | ~$54.7 billion |
| 6 | Poland | 5.9% | ~$48.9 billion |
| 7 | Belgium | 4.9% | ~$40.6 billion |
| 8 | Ireland | 3.0% | ~$24.8 billion |
| 9 | Czech Republic | 2.7% | ~$22.4 billion |
| 10 | Hungary | 2.5% | ~$20.7 billion |
| Top 10 Total | 84.2% | — |
Source: CCPIT Academy, China Customs
The top three — Germany, the Netherlands, and France — account for nearly half (49.4%) of all China–EU trade. However, the report notes that trade with Central and Eastern European countries like Poland, the Czech Republic, and Hungary has grown rapidly in recent years, diversifying the geographic footprint.
1.3 Investment: Stock Surpasses $280 Billion, but Flow Declines
Table 3: China’s Outbound Direct Investment (ODI) in the EU
| Metric | Value | Period |
|---|---|---|
| Cumulative Bilateral Investment Stock | >$280 billion | By end 2025 |
| China ODI Stock in EU | $116.85 billion | End 2024 |
| China ODI Flow to EU | $5.88 billion | 2024 |
| YoY Change in Flow | -9.3% | 2024 vs 2023 |
| % of China’s Total ODI Flow | 3.1% | 2024 |
| Share of China’s ODI in Developed Economies | 34.5% | #1 |
| Chinese Enterprises in EU | >3,000 | All 27 member states |
| Foreign Staff Employed by Chinese Firms | >260,000 | All 27 member states |
Source: CCPIT Academy, China MOFCOM Statistical Bulletin
Despite a 9.3% decline in annual ODI flow, the EU remains China’s single largest investment destination among developed economies by stock. More than 3,000 Chinese enterprises now operate across every EU member state, directly employing over 260,000 local workers.
Table 4: Top Destinations for China’s ODI to the EU — 2024
| Rank | Country | ODI Flow (USD) | YoY Change | Share of EU Total |
|---|---|---|---|---|
| 1 | Luxembourg | $2.59 billion | +11.3% | 44.1% |
| 2 | Germany | $1.24 billion | +93.5% | 21.1% |
| 3 | Sweden | $1.15 billion | +54.6% | 19.5% |
| Others | ~$0.90 billion | — | 15.3% |
Source: CCPIT Academy, China MOFCOM Statistical Bulletin
Germany’s dramatic 93.5% surge stands out, likely reflecting Chinese companies positioning within Europe’s industrial heartland. Luxembourg’s dominant share (44.1%), while inflated by its role as a financial holding hub, remains a consistent feature of China–EU investment patterns.
Table 5: Top Industries for China’s ODI to the EU — 2024
| Rank | Industry | ODI Flow (USD) | YoY Change | Share of EU Total |
|---|---|---|---|---|
| 1 | Financial Services | $4.23 billion | +67.8% | 71.9% |
| 2 | Manufacturing | $2.83 billion | +51.8% | 48.2% |
| 3 | Hotels & Catering | $0.44 billion | +293x | 7.5% |
Source: CCPIT Academy, China MOFCOM Statistical Bulletin Note: Percentages exceed 100% as some enterprises operate across multiple sectors.
Manufacturing investment grew over 50%, underscoring Chinese firms’ interest in European industrial capabilities and market access.
1.4 Diplomatic Momentum: High-Level Engagement
The report emphasizes the diplomatic context of 2025 as a pivotal year:
- May 6, 2025 — President Xi Jinping exchanged congratulatory messages with European Council President Costa and Commission President von der Leyen on the 50th anniversary of diplomatic ties.
- July 24, 2025 — President Xi met with Costa and von der Leyen, proposing three principles: mutual respect, open cooperation, and multilateralism.
- July 24, 2025 — Premier Li Qiang co-chaired the 25th China–EU Summit with Costa and von der Leyen.
- September 24, 2025 — Premier Li met with von der Leyen again.
- Bilateral engagement also included the 10th China–EU Environment Policy Ministerial Dialogue (June 13), the 6th China–EU High-Level Environment and Climate Dialogue (July 14), and a joint statement on climate change.
1.5 Business Community Engagement
CCPIT itself was highly active:
- 8 meetings between Party/state leaders and European business leaders invited by CCPIT
- 60 batches of meetings between CCPIT leadership and European business figures
- 122 specific appeals from European enterprises resolved through CCPIT’s foreign enterprise service task force
- 25 European enterprises participated in CCPIT’s “Local Tour” investment promotion events
- 380 trade and investment promotion delegations dispatched to 14 EU countries
- 291 overseas exhibition projects executed across 14 EU countries, with 10,300 exhibiting enterprises and 192,000+ sqm of net exhibition area
- The 3rd China International Supply Chain Expo (July 16–20, 2025) attracted nearly 90 enterprises from 15 European countries, including Bosch, Siemens, Wacker Chemie, PwC, Swire, Airbus, L’Oréal, Volvo Cars, MSC, and Maersk
- The 18th China–EU Investment, Trade and Technology Cooperation Fair (November 19–21) facilitated 166 cooperation intentions in new energy, AI, and biomedicine
Part 2: Overall Assessment — How Chinese Enterprises Rate the EU Business Environment
2.1 The Headline Numbers
Table 6: Overall Assessment of EU Business Environment — 2025
| Assessment | % of Surveyed Enterprises |
|---|---|
| Needs improvement | 47.0% |
| No change from 2024 | 44.0% |
| Worse than 2024 | 36.7% |
| Improved vs 2024 | ~19.3% (implied) |
Source: CCPIT Academy survey
The core finding: nearly half of Chinese enterprises see room for improvement, and more than one-third believe conditions deteriorated in 2025. This is the eighth consecutive year CCPIT has conducted this survey, providing a unique longitudinal dataset on China–EU business sentiment.
Table 7: Key Concern Areas — Summary
| Issue Area | Key Statistic |
|---|---|
| Market access barriers | Over 50% report high barriers; 51.8% expect further increases |
| “Pan-securitization” | 65.9% report politicization of economic issues |
| Rising production costs | 42.8% report increasing costs |
| Administrative enforcement | Nearly 40% say no improvement from 2024 |
Source: CCPIT Academy survey
2.2 The CCPIT Academy Methodology
Table 8: Survey Methodology
| Parameter | Detail |
|---|---|
| Survey Coverage | ~10% of all Chinese enterprises established in the EU |
| Respondents | Senior management familiar with EU operations |
| Methods | Questionnaire survey, field visits (EU travel), enterprise interviews (online + offline), policy/legal analysis |
| Supplementary Interviews | Law firms, accounting firms, consulting firms (third-party perspective) |
| Enterprise Types | Private 70.5%, State-owned 28.3%, Other 1.2% |
| Enterprise Size | Large 47.6%, Medium 36.7%, Small/Micro 15.7% |
| Industry Coverage | Wholesale/retail, manufacturing, R&D/technical services, IT/software, leasing/business services, finance, transport/logistics, agriculture, mining, utilities |
Source: CCPIT Academy
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