What Types of Businesses Do Chinese Entrepreneurs Most Often Open in Europe?

Chinese entrepreneurs are expanding their presence in Europe at a rapid pace, diversifying their investments and establishing both small, traditional enterprises and large-scale industrial and technological projects. Over the past decade, the nature of Chinese business in Europe has changed considerably – evolving from family-run restaurants and shops to strategic investments in cutting-edge industries such as electric vehicles, green energy and innovation-driven sectors.

1. High-tech industries and green energy

One of the fastest-growing areas is the electric vehicle (EV) and renewable energy sector. China dominates the global supply chain for EVs and battery technology, enabling Chinese companies to penetrate the European market. Major manufacturing plants for electric vehicles, batteries, and components, as well as research and development centres, are being established in Germany, Hungary, Poland, and France. These projects create jobs and strengthen China’s role in Europe’s transition towards a low-carbon economy.

Chinese capital is also increasingly entering technology fields such as software, telecommunications, artificial intelligence and semiconductor production. Chinese corporations are investing in European start-ups and acquiring stakes in established tech firms to access expertise and innovation. Many of them are also establishing joint ventures to localise production and align with European standards and regulatory frameworks.

2. Retail, hospitality and food services

Alongside high-tech expansion, Chinese entrepreneurs remain active in retail and hospitality. Restaurants, grocery stores, Asian food shops and import boutiques have become an integral part of the European urban landscape. These small and medium-sized enterprises serve local residents and growing Chinese communities alike, helping to forge strong cultural and economic ties between China and Europe.

3. Two Levels of Chinese Entrepreneurship in Europe

Chinese entrepreneurship in Europe operates on two main levels:

• Large-scale investments, driven by state-owned enterprises and private conglomerates, focus on strategic industries such as automotive manufacturing, renewable energy, electronics and infrastructure. These projects often involve mergers and acquisitions that combine Chinese technology with European industrial capacity.
• Small and medium-sized enterprises (SMEs), typically family-run or owned by individual entrepreneurs, dominate trade, services and the food industry. Historically, it was these small businesses that laid the foundation for many Chinese communities in cities such as Paris, London, Milan and Amsterdam, where the first Chinatowns emerged in the mid-20th century.

4. Expansion in e-commerce and logistics

Over the past five years, Chinese e-commerce and cross-border logistics companies have expanded significantly across Europe. Notably, Goodcang Logistics (part of the Zongteng Group) leased an additional 65,000 m² of warehouse space in the GLP Mönchengladbach Regioparking complex in Germany, increasing its total footprint to 98,000 m². This was one of the largest warehouse leasing deals in Germany that year.

Between 2019 and 2024, GLP allocated almost 400,000 m² of logistics space to Chinese cross-border e-commerce companies across Europe. These companies, including major online retailers and specialised distributors, rely on advanced logistics solutions to ensure fast delivery and a high-quality service for European consumers. The rise of platforms such as SHEIN and Temu has further increased consumer expectations regarding delivery speed, prompting Chinese firms to establish local logistics networks close to end customers.

5. Regulatory and operational challenges

However, entering the European market comes with significant regulatory and operational challenges. Europe’s diverse landscape of building codes, labour laws, ESG regulations and sustainability standards requires adaptation. Chinese firms, accustomed to a more centralised regulatory system, often require the assistance of local partners to manage multi-jurisdictional compliance, obtain permits, and localise operations.

Partnering with European service providers offering bilingual legal, logistical and administrative support has become crucial for navigating the complexities of local regulations and ensuring business continuity.

6. Long-Term Strategy and Perception Challenges

Chinese companies are increasingly viewing Europe not merely as a sales market, but also as a long-term base for acquiring technology, producing goods, and establishing a strategic presence. However, their success largely depends on their ability to adapt their corporate governance, management culture and communication to align with European expectations.

Some parts of Europe are growing concerned that Chinese investors may target innovation assets only to later withdraw operations, raising fears over security and employment. Furthermore, achieving brand recognition and public trust remains challenging: many European consumers still perceive Chinese corporations as being opaque and subject to state influence. Currently, only a few Chinese brands rank highly in global trust indices, lagging behind their South Korean and Japanese counterparts.

7. The Path to Success: ‘Europeanisation’ of Chinese Business

To achieve long-term success, Chinese firms must ‘Europeanise’ – that is, integrate into the local business culture, employ European managers, comply with labour and environmental norms, and build long-term trust with stakeholders and local communities.

By doing so, Chinese corporations can strengthen their growth in Europe and become credible and valued partners in the continent’s economic transformation.

In summary, modern Chinese business in Europe represents a dynamic and multifaceted ecosystem, combining innovation, sustainable development and cultural exchange. From small, family-run businesses to cutting-edge industrial behemoths, Chinese entrepreneurs are reshaping the European market, contributing to its digitalisation, green transition and economic modernisation while preserving the cultural heritage and community ties established by earlier generations.

China’s investments in Europe

In recent years, Chinese investment in Europe has reached a new level, marking a shift towards deeper economic partnerships and mutual integration. Since the early 2000s, Chinese capital inflows into Europe have grown steadily, accelerating significantly after 2009. The total volume of China’s direct investments in the European Union (EU) now exceeds USD 100 billion (approximately EUR 85.2 billion), with annual capital flows nearly comparable to European investment levels in China.

By the end of 2024, Chinese investors had established over 3,000 enterprises across all 27 EU member states, creating employment for over 350,000 European workers. These companies operate across a wide range of sectors, including manufacturing, logistics, renewable energy, information technology, automotive production and financial services. In countries such as Germany, the Netherlands, France and the Czech Republic, Chinese corporations have evolved from being mere investors to becoming strategic partners in advancing innovation and industrial modernisation.

Green technologies and sustainable development

One of the most significant areas of China–EU economic cooperation is environmental sustainability and the green transition. In 2024, two important milestones were celebrated: the 10^(th) anniversary of the Paris Climate Agreement and the 20^(th) anniversary of the China–EU Partnership on Climate Change. Over the past 20 years, both parties have achieved tangible results in joint projects related to environmental protection, renewable energy, water resource management and the circular economy. These initiatives have contributed to reducing carbon footprints, improving energy efficiency, and promoting the use of clean technologies on both continents.

A key focus of Chinese investment in Europe has become the green technology and electric vehicle (EV) industry. Chinese manufacturers of electric vehicles, next-generation batteries, and renewable energy components are expanding rapidly throughout the EU. The establishment of assembly plants, research centres and logistics hubs is generating jobs and accelerating Europe’s transition to a low-carbon economy. This form of investment marks a new stage in the collaboration between China and Europe, with China acting as a strategic contributor to Europe’s technological and energy transformation, not merely a provider of capital.

From trade to strategic partnership

In the long term, cooperation between China and the European Union will extend far beyond trade and investment to form a stable platform for addressing global challenges, from climate policy to digital transformation. The growing Chinese presence in Europe reflects mutual strategic interests: the EU gains access to China’s investment capacity and technological expertise, and China gains access to European markets, innovation clusters and a regulatory environment that promotes sustainable industry development.

The current phase of Chinese investment in Europe can be described as a shift from quantitative growth to qualitative integration. Economic relations between China and the EU are increasingly based on the principles of mutual benefit, sustainable development and the joint advancement of green technologies. This makes them one of the key pillars of global economic stability and the energy transition in the 21^(st) century.

2024: The Year of Investment Recovery

Following several years of decline, Chinese direct investment in Europe experienced a significant increase in 2024, despite ongoing geopolitical tensions and stricter regulatory oversight. According to recent analyses, the total investment volume in the EU and the United Kingdom reached approximately €10 billion, marking a 47% increase compared to the previous year. This was the first significant increase since the 2016 peak, when Chinese companies invested heavily in European industry, real estate, and infrastructure.

Growth was driven by an increase in ‘greenfield’ projects and a revival in mergers and acquisitions (M&As). Investments in new enterprises rose by 21%, reaching almost EUR 6 billion, while M&A transactions more than doubled to EUR 4 billion. Notably, the geographic distribution of Chinese investment shifted; whereas previously most capital went to Germany, France, and the UK, there has been a clear shift towards Central and Eastern Europe.

Hungary emerged as the largest recipient of Chinese capital, accounting for around one-third of all Chinese investment in 2024. The automotive and energy sectors – particularly electric vehicles and battery manufacturing – were the leading targets, attracting over EUR 5 billion, accounting for more than half of all Chinese investment for the year. The opening of electric vehicle (EV) and battery plants in Hungary, Germany, and Poland has strengthened China’s position as a key player in Europe’s green technology landscape.

Strategic and Environmental Outlook

Despite facing internal economic challenges – such as slowing growth and strain in the real estate sector – China continues to view Europe as a highly attractive investment destination. They increasingly view Europe not merely as a consumer market, but also as a technological partner, enabling joint ventures in energy, transportation, and industrial automation.

Environmental cooperation remains a cornerstone of China–EU relations. In 2024, both parties reaffirmed their long-term commitment to collaborating on climate action, the energy transition, water resource management, and the circular economy. Chinese companies are playing an active role in constructing solar and wind power facilities, as well as supplying advanced batteries to the European market.

This renewed wave of investment demonstrates that China’s engagement with Europe has evolved into a strategic partnership where commercial interests intersect with environmental and technological transformation. China is no longer merely a source of capital; it has also become a key contributor to Europe’s industrial modernisation and a driver of sustainable, innovative, and low-carbon economic growth.

Major Chinese companies with offices in Europe

Below are three of the most prominent Chinese corporations with a strong and visible presence in Europe, each providing valuable insights into international business dynamics, investment, and cross-border cooperation.

1. Industrial and Commercial Bank of China (Europe) S.A. – ICBC Europe

The Industrial and Commercial Bank of China (ICBC) is the largest banking institution in China and one of the world’s largest financial groups. Its European subsidiary, ICBC Europe, is headquartered in Luxembourg and has additional branches in major European financial centres such as Paris, Amsterdam, Milan, Madrid and Brussels.

This structure enables ICBC Europe to serve both Chinese enterprises operating in Europe and European corporate clients engaged in trade and financial activities with China. The bank provides a wide range of services, including corporate banking, trade finance, treasury operations, and cross-border investment support.

ICBC Europe is particularly noteworthy as it highlights the financial accessibility of foreign assets, the development of Chinese banking infrastructure within the EU and the legal and regulatory framework governing the operations of Chinese financial institutions in the European Union.

Through ICBC Europe, the bank plays a pivotal role in facilitating financial integration between China and the EU, offering a bridge between European capital markets and China’s expanding global investment footprint.

2. Contemporary Amperex Technology Co., Limited (CATL)

CATL is the world’s largest manufacturer of batteries for electric vehicles (EVs) and a key player in the global green energy transition.

In Europe, CATL has made substantial industrial investments that extend well beyond simple trade or representation. The company has established a robust production base, showcasing China’s evolution from an exporter of goods to a strategic industrial partner within the EU.

• CATL’s first European plant opened in Erfurt, Germany, marking a milestone as the first major Chinese battery factory in Western Europe.
• Its second facility, located in Debrecen, Hungary, strengthens the company’s supply network to leading European car manufacturers such as BMW, Mercedes-Benz and Volkswagen.
• A third plant, which is being planned in Spain in cooperation with a major European car manufacturer, will further increase CATL’s production capacity and its integration into the European electric vehicle (EV) supply chain.

This case exemplifies China’s industrial expansion in the EU, achieved not only through exports, but also through direct investment, localised production and collaboration with European regulators and incentive programmes. CATL’s European operations are supported by EU green transition subsidies and partnerships under the continent’s sustainable mobility and energy efficiency policies.
By establishing a presence in Europe, CATL is playing a vital role in localising clean-tech manufacturing, creating jobs and supporting the continent’s transition to a low-carbon economy. This also strengthens China’s position as a global leader in next-generation energy technology.

3. Huawei Technologies Co., Ltd.
is one of the most prominent and technologically advanced Chinese multinational corporations, with a significant and diversified presence across Europe. It operates through a wide network of research and development centres, regional offices, and partnerships with European telecommunications operators, universities, and technology firms.

Huawei’s European headquarters are located in Düsseldorf, Germany, and the company has offices in almost every major EU member state, including France, Spain, Italy, the Netherlands, Poland and Hungary. It employs tens of thousands of professionals in Europe, primarily focusing on telecommunications infrastructure, 5G technology, cloud computing, and consumer electronics. However, Huawei’s operations in Europe also face significant regulatory challenges. These include technology control measures, cybersecurity concerns, and market access restrictions imposed under various EU and national regulations. Such challenges make Huawei’s experience an important case study for foreign investors and consultants, highlighting the complexities of operating within the EU’s highly regulated technology landscape.

Conversely, Huawei’s European operations demonstrate how a Chinese corporation can adapt its corporate structure to the European market. The company invests heavily in localised research and development, with centres in countries such as Germany, France, Belgium and Finland, and collaborates closely with European universities and innovation hubs. Through these partnerships, Huawei demonstrates its long-term commitment to innovation, compliance, and cooperation, balancing technological advancement with regulatory adaptation. Huawei’s presence in Europe thus provides a vivid example of how a major Chinese technology firm can manage risk, perception and integration while contributing to the region’s digital transformation and research ecosystem.

How Regulated United Europe Can Help Chinese Citizens Start a Business in the EU

Regulated United Europe (RUE) provides comprehensive support to Chinese citizens who wish to establish and develop a business within the European Union. The firm offers full legal, tax and administrative assistance at every stage, from selecting the most suitable jurisdiction, to company registration, to launching commercial operations.

Initially, RUE experts conduct an in-depth consultation to analyse the client’s business goals, target industry, budget, and expansion plans. Based on this assessment, the team selects the optimal EU jurisdiction for company formation, such as Estonia, the Czech Republic, Lithuania, Malta or Cyprus, taking into account the tax regime, banking infrastructure and residency requirements for directors.

Practical support from RUE includes:

• Preparation of all incorporation documents (Articles of Association, Memorandum and Power of Attorney);
• Remote company registration, without the need for personal presence in Europe;
• Obtaining tax identification numbers (VAT, EORI);
• Assistance with opening corporate bank accounts or fintech payment accounts in the EU;
• Registration of the company in the Commercial Register, including guidance on the appointment of directors and shareholders.

Tax optimisation and compliance

Special attention is given to tax planning and compliance with substance requirements. RUE’s tax advisors design bespoke strategies to optimise the taxation of profits, dividends and cross-border payments. The firm also provides ongoing accounting services and ensures full compliance with local reporting standards.

Licensing and innovation support

Regulated United Europe offers specialised assistance to Chinese entrepreneurs interested in digital, fintech or innovative ventures in obtaining the relevant licences, including MiCA, CASP, EMI and PSP authorisations. The firm also supports trademark registration, work permit applications for foreign employees and the structuring of international holdings for long-term asset management.

Residence and Business Immigration

RUE can also help business owners and their family members obtain residence permits, enabling them to legally reside and operate in the EU. With years of experience working with Asian entrepreneurs, Regulated United Europe has become a trusted partner for Chinese investors seeking to enter the European market. By working with RUE, clients can establish a company in Europe and build a sustainable, fully compliant business structure with access to the EU’s extensive financial, commercial and investment opportunities.