Staff Report
A new survey reveals that European companies continue to express strong optimism about expanding their operations in South China, with the Greater Bay Area (GBA) emerging as a focal point for future investment and strategic growth.
Despite global economic uncertainty and rising geopolitical tensions, the survey highlights that a majority of European firms see South China as a resilient and dynamic region offering long-term potential. The GBA—encompassing key cities such as Hong Kong, Shenzhen, Guangzhou, and Macau—is particularly attractive due to its integration of finance, manufacturing, innovation, and global trade connectivity.
Key Insights from the Survey
- Positive Business Outlook: Over 70% of respondents indicated confidence in the South China market for the next 2–3 years, citing strong local demand and access to regional supply chains.
- GBA Appeal: The majority of European firms view the Greater Bay Area as a gateway for scaling operations across China and the Asia-Pacific region. Its world-class infrastructure and talent pool make it a preferred hub for tech, healthcare, logistics, and green industries.
- Policy Support Matters: Many companies praised local efforts to improve the business environment, including streamlined customs procedures, tax incentives, and innovation support in GBA pilot zones.
- Challenges Remain: While optimism remains high, firms also acknowledged ongoing challenges such as compliance with local regulations, data transfer concerns, and navigating China’s evolving regulatory landscape.
Why the Greater Bay Area?
The GBA is designed to be a high-level economic powerhouse linking nine Guangdong cities with Hong Kong and Macau. It aims to rival other global city clusters like the Tokyo Bay and San Francisco Bay Areas. For European businesses, this integration presents unprecedented access to a combined market of over 80 million people with a GDP exceeding $1.9 trillion.
Conclusion
European companies are not only holding their ground in China—they are actively looking to grow, with South China and the Greater Bay Area playing a central role in their expansion strategies. The region’s mix of policy incentives, infrastructure, and innovation-driven development makes it one of the most promising frontiers for global business in 2025 and beyond.
