China, EU should fight pandemic together

Last year, when Premier Li Keqiang attended the China-EU leaders meeting in Brussels, he inaugurated the China Chamber of Commerce to the EU -- which I am privileged to head -- on April 8.

Setting up this new China-EU platform sends a crystal clear message: the humongous potential in two markets with a combined 1.9 billion consumers needs great effort to tap their full potential, and Chinese businesses are committed to doing so.

Today, the chamber represents 61 members and includes business associations in most EU member states, covering up to 1,000 Chinese enterprises which have invested in the continent.

With China’s direct investment in the EU passing $100 billion by 2019, over 130 times the figure from 2005, the presence of Chinese businesses has become increasingly prominent despite growing bottlenecks and the sudden disruption brought by the COVID-19 pandemic.

In marking our first anniversary, I address two important issues.

First, Chinese business sectors have been following the policy evolution of the von der Leyen Commission, which started last December. We generally welcome the policy package to restructure the European economy that mainly targets green and digital transformation.

At the political level, Chinese President Xi Jinping and European leaders, during their recent telephone diplomacy, agreed on safeguarding the stability of industrial and supply chains between China and EU members. Apart from joint coordination in the fight against the spread of the virus, the leaders agreed to roll out a long-prepared political agenda, including a scheduled summit between President Xi and European leaders in Germany, after the ongoing battle.

At this challenging time, we believe this political consensus is vital for Chinese businesses to build confidence to recover and stay strong in the European market.

So in this sense, the general relationship between China and the EU, from our businesses’ perspectives, is improving. We welcome the improvement amid rising protectionism in Europe last year.

The second issue I want to mention is the mutual understanding and support of European partners were exemplified when we joined the front line against the COVID-19 pandemic by assuming an active role in mobilizing resources and coordinating assistance.

In recent weeks, this spirit has been amply showcased. When China was hit by the epidemic, our members and European partners raced against time, donating masks and other medical supplies worth at least 3 million Euros to China.

Now, we are extremely concerned that the situation is worsening in Europe. The chamber has been actively coordinating efforts with suppliers for much-needed medical equipment and supplies. So far, our members have mobilized medical supplies valued at 6 million Euros for European friends.

When our donation was distributed to frontline hospitals in Italy, former Italian prime minister Romano Prodi saw it as a sign of friendship and solidarity. “We will never forget,” Prodi wrote to the CCCEU. “I do hope that the world understands that we are really in the same boat.”

We must renew such a caring spirit as mounting difficulties, unexpected disruptions and rising uncertainties are changing the already-challenging business landscape between China and the EU.

As more Western countries turn to lockdowns, a supply shock to the global economy is expected. Global supply chains will suffer from the disruption caused by workers’ absence from the workplace, in tandem with lower consumer demand and the negative impact of uncertainty on investment plans.

Our survey findings in March can be used as reference points for European leaders when crafting more business-friendly policies: more than 60 percent of Chinese companies operating in the EU feel affected by the pandemic and more than 50 percent still struggle with business operations in Europe.

In 2019, six out of 10 reported zero growth in revenues year-on-year. The European market is not an easy one, and there are many “glass ceilings and walls”.

Nonetheless, the companies remain positive about the future, and are strongly committed to Europe as their business destination: more than 60 percent plan to increase their overall investment in 2020.

With EU institutions drafting their timetables and road maps to recover from the pandemic, the months ahead will require strong and timely action to improve the business environment on the continent.

Chinese companies are part of the EU business environment, and effective communication with Chinese companies should be enhanced so they can increase their investment in the EU: fighting the COVID19 crisis does not exclude seeking opportunities with long-term partners.

The troubled times we are living in will not pass overnight. Only in unity and with responsibility we can win this fight.

We certainly hope the chamber’s next anniversary is celebrated in a more joyful time.

The author is chairperson of the China Chamber of Commerce to the EU.The views don't necessarily reflect those of China Daily.