Since 2025, trade and investment between China and Europe has remained on a steady upward trajectory, with the current investment boom from European companies in China showing no signs of slowing down.

Data from China's Ministry of Commerce (MOC) shows that in 2025, British investment in China increased by 15.9 percent and Swiss investment by 66.8 percent. A report from the German Economic Institute (IW) indicates that Germany's new investment in China between January and November of  2025 was approximately seven billion euros, an increase of over 55 percent compared to 2024, reaching the highest level since 2021.

Shifting more production processes to China

The latest British Business in China Sentiment Survey 2025-2026, released by the British Chamber of Commerce in China, shows that the expectations for development of British companies in China for 2026 have peaked since 2020, and around one-third of companies plan to increase investment in 2026.

Recently, the French Air Liquide Group announced a 25 million euro investment to carry out an electrification transformation of their air separation plant in Yulin, Shaanxi province, northwest China. Once the project is completed, it will achieve both emissions reduction and production increases.

An article in the Financial Times said that "A complete industrial chain ecosystem, continuously upgraded manufacturing capabilities, and an extremely large market, together constitute the strong pull of the Chinese market on European enterprises. An increasing number of European enterprises are now looking eastward with a more pragmatic attitude."

Combining cost and effectiveness

The Business Confidence Survey Report 2025/26, released by the German Chamber of Commerce in China in December 2025, showed that 93 percent of German companies in China plan to continue to engagement in the Chinese market, and 56 percent of the companies have explicitly stated that they will increase their investment. This data reflects the strong resilience of China-Europe economic and trade cooperation.

In November 2025, the German chemical giant BASF invested in Zhanjiang, Guangdong province, southeast China, and built the core facilities of an integrated base. The first batch of products has successfully gone into production, marking a crucial step for this company's largest single investment to date.

"For the global supply chain, China is an ideal choice that offers both cost-effectiveness and an optimal industrial ecosystem," Jens Eskelund, president of the European Union (EU) Chamber of Commerce in China, said. China's competitive edge has evolved from the traditional cost advantage to an all round advantage consisting of "comprehensive industrial chain support, large-scale production capacity, and mature industrial infrastructure."

Integrating deeply through investment and cooperation

The industries of China and Europe have achieved solid integration in investment and cooperation. This integration not only benefits both sides, but also injects valuable certainty into the uncertain global economy.

The Business Confidence Survey Report 2025/26 of the German Chamber of Commerce in China also shows that 68 percent of the surveyed German companies have already carried out overseas business cooperation with Chinese enterprises.

In addition, a survey by U.S. Rhodium Group shows that since 2021, direct investment by the EU's manufacturing sector in China has continued to increase.

In the second quarter of 2024, the greenfield investment by the EU's manufacturing sector in China reached 3.6 billion euro, setting a new record. According to data from the MOC of China, as of the end of 2024, the cumulative actual investment by EU enterprises in China had exceeded 150 billion USD.

Since entering the Chinese market in 2014, the German engineering giant, the Siempelkamp Group has expanded its Qingdao base three times. The fourth phase of the project is scheduled to commence in 2026. Konstantinos (Kosta) Karakolidis, CEO at Siempelkamp (Qingdao) Machinery & Equipment Co., Ltd., said the growth potential of the Chinese market is clearly evident to all. They are willing to share the development benefits through continuous investment.