Beijing, 24^th July 2025 – A business roundtable hosted by the Chinese Ministry of Commerce took place on the margins of the EU-China Summit today, comprising two sessions: one with EU and Chinese CEOs, and one with EU and Chinese state leaders, including European Commission President Ursula von der Leyen and Chinese Premier Li Qiang. European Chamber President Jens Eskelund delivered a keynote address during the state leaders’ session.

President Eskelund recognised the significant value the relationship has generated for both Europe and China in the past five decades and the potential for future value creation. However, he also noted that there are now significant imbalances in the relationship which must be addressed for that value to be realised.

This dynamic has been further complicated by the fact that many of China’s industries are suffering from so-called ‘involution’—whereby ever-increasing investments are resulting in ever-diminishing returns—the externalities of which are currently being exported to the EU. This, Eskelund said, is not only contributing to the bloc’s growing trade imbalance with China but also poses a challenge for some European industries.

He further noted that European businesses in China continue to face long-standing regulatory and market access restrictions, with a record high 63 per cent of European Chamber members reporting having missed business opportunities as a result.

In her remarks, European Commission President Ursula von der Leyen noted that the EU wants to build a more meaningful and stable relationship with China. She added that the bloc’s concerns will have to be addressed for this to be possible, and that the EU needs to protect the security and prosperity of European citizens and businesses.

Chinese Premier Li Qiang said, “As long as China and the EU uphold the principles of openness and free trade, and strengthen market connectivity and industrial alignment, both sides can fully leverage their comparative advantages for mutual benefit[…]At a time when global growth momentum is waning and economic vitality is slowing, continued expansion of trade and investment between China and the EU can generate powerful synergies for development.”

During the CEO session, executives from major European companies expressed confidence in the long-term potential of the Chinese market despite the many near-term challenges faced by European foreign-invested enterprises (FIEs) operating in China, including:   

• a lack of market access and fair competition between FIEs and domestic Chinese companies;
• the lack of a transparent, predictable and efficient regulatory environment;
• challenges related to the financing of company operations and account receivables;
• overly stringent localisation requirements;
• a lack of alignment between China’s regulatory framework and global standards;
• intellectual property rights-related issues.

“The 50^th anniversary of the establishment of diplomatic ties between the EU and China presents the opportunity to not only acknowledge the many successes but also give our relationship a service check,” said Jens Eskelund, president of the European Union Chamber of Commerce in China. “It is important to recognise that the current direction of travel is not sustainable. It is positive that both sides are continuing to engage in frank discussions at the highest-level in order to arrive at a more viable model of engagement that can see us through the next 50 years and beyond.”