Jens Eskelund (EU Chamber in China): «The real danger is the crisis of the Chinese economy»

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Xi Jinping is on his way back from a trip to France, Serbia and Hungary, a tangible sign that China is starting again in business and, in particular, in some European countries considered friends. With the European Union, as a whole, the situation is very different. But what are the implications for European companies in China? We talked about it with Jens Eskelund, president of the European Chamber of Commerce in Beijing, on the day of the presentation of the annual Position paper. The picture, explains the number one of Maersk China, is complex, with a single constant: the inevitability of the Chinese market for Europe and, vice versa, of the European one for China.

China has its own agenda on Europe, as demonstrated by President Xi Jinping’s trip. What effects could it have on European companies operating in China?

My impression is that China still has the priority of ensuring the stability of the European market for its exports. An extremely important market that cannot be replaced by others. That said, both French President Macron and EU Commission President von der Leyen cannot fail to underline that there is an imbalance, a trade deficit three times larger in terms of value, four times larger in quantitative terms to the advantage of China. There is a greater need than ever to increase European exports to China.

On the one hand, China complains of slowdowns in the European market, on the other, Europe stigmatizes the trade imbalance. What is the main concern for European companies in China?

In reality, the real big problem today is the state of the Chinese economy itself. This year, unlike last year, the internal problems are far greater than the external ones. While industrial investments are increasing, those in the real estate sector have decreased dramatically. This is dramatic because if you have problems on the internal demand front and continue to invest in manufacturing, the only viable level remaining is the external level of import export, dependent on external demand. It would make more sense, in this context, to invest in internal demand rather than on the supply chain side.