Which products do Chinese most often purchase in Europe?

Both individual consumers and corporate clients are actively purchasing European goods, which are perceived as symbols of quality, authenticity and cultural value. Despite restrictions on capital flows, demand for European products remains consistently high. The main product categories are premium consumer goods, technology and equipment, and educational and cultural products.

1. Luxury goods and fashion

This category remains the undisputed leader. Chinese consumers have a long-standing interest in European luxury brands such as Louis Vuitton, Hermès, Gucci, Chanel, Prada, Dior, Cartier, Rolex and Omega. The primary motivations are status, exceptional design, and impeccable quality. Purchases are made during trips to Europe and through official online channels and intermediaries. The most popular destinations are France, Italy, Switzerland and the United Kingdom.

2. Premium cars

The Chinese market remains the largest consumer of German cars, such as Mercedes-Benz, BMW, Audi and Porsche, as well as Italian brands like Maserati, Ferrari and Lamborghini. The European automotive industry is associated with safety, engineering precision and prestige. An increasing number of wealthy Chinese individuals are purchasing cars directly from Europe using export programmes or authorised dealer delivery services.

3. Food, wine, and delicacies

Interest in European gastronomy is steadily growing. Chinese consumers particularly value wines from France, Italy and Spain, as well as pastries, cheeses, olive oil and organic produce. There is strong demand in China for imported Bordeaux wines, champagne, Italian pasta and Swiss and Belgian chocolate. Products certified by the EU and labelled as organic are perceived as safe and prestigious.

4. Cosmetics, perfumes, and skincare

The European cosmetics industry is extremely popular in China. French and Italian brands such as Lancôme, Estée Lauder, Clarins, Chanel, Dior and L’Oréal are associated with safety and high standards. An increasing number of Chinese people are ordering products directly through European platforms or while travelling.

5. Medical and pharmaceutical products

Chinese consumers are increasingly turning to European dietary supplements, vitamins, cosmetics and personal health equipment. German and Swiss brands, which are renowned for their strict quality control, are particularly popular. Anti-ageing and wellness products, from collagen to organic supplements, are also in demand.

6. Jewellery, watches, and accessories

Swiss watches (Rolex, Patek Philippe, Audemars Piguet, and Omega), as well as jewellery from Cartier, Bulgari, and Van Cleef & Arpels, are among the most sought-after items among wealthy Chinese consumers. Such purchases are made as a means of preserving wealth and as a symbol of success.

7. Children’s products and education

The market for children’s clothing, organic food and European toys continues to grow. Chinese parents consider European products to be safe and of a high standard. Furthermore, education is a top priority for ‘intangible purchases’: studying at universities in the UK, France, Germany and the Netherlands is seen as an investment in the future.

8. Art, antiques, and collectibles

Wealthy Chinese collectors are actively acquiring European art and antique furniture. Demand is concentrated in London, Paris and Geneva, where leading auction houses are based.

9. Technologies, industrial equipment, and innovative solutions

At a corporate level, Chinese companies are purchasing equipment, machine tools, measuring systems, medical devices, and renewable energy technologies from Europe. Germany, Italy and the Netherlands are the main suppliers of industrial machinery.

10. Tourism and Real Estate

One way in which wealthy Chinese citizens preserve and diversify their wealth is by purchasing real estate in Europe. Popular destinations include Cyprus, Greece, Portugal and Italy, where residence permits can be obtained through investment. Tourism continues to stimulate consumer demand, with Chinese tourists making significant purchases in European capitals.

Overall, Chinese consumers are buying European products that reflect European values: quality, style, and cultural heritage. While the premium segment remains dominant, there is also growing interest in practical categories such as technology, medical supplies, and eco-friendly products. For European companies, China remains one of the most promising export destinations, where a combination of effective branding, digital marketing and cultural adaptation can yield significant commercial results.

But why is demand for European goods growing in China?

Over the past two decades, consumption patterns in China have undergone fundamental changes. A country long associated with mass production, it has gradually become one of the world’s largest markets for premium and technologically sophisticated goods. According to McKinsey and Euromonitor, Chinese consumers account for over 35% of global demand for luxury goods, and they are also leading importers of cosmetics, wine, pharmaceuticals, and industrial technology from Europe. To understand why European goods are so attractive, it is necessary to consider a combination of economic, cultural, social and institutional factors.

1. Income growth and the formation of a new consumer elite

Since the mid-2000s, China’s middle class has grown steadily. According to World Bank estimates, over 400 million people in China now have income levels comparable to those in Europe. This has shaped a new consumer culture that is focused on quality, prestige, and authenticity. European goods, particularly premium brands, have become status symbols and confirmations of economic success. For a significant proportion of the urban population, buying a European car, handbag or watch is seen as a way of gaining social acceptance – a sign that they belong to an educated and wealthy class. Therefore, demand for European goods in China is socio-psychological as well as economic, reflecting the consolidation of a new urban elite.

2. Europe’s reputation as a source of authenticity and quality

Historically, Europe has been associated with craftsmanship, design, and cultural heritage. French fashion, Italian leather goods, Swiss watches and German engineering have become global benchmarks in their respective industries.
Chinese consumers, especially those born after 1990, prefer products with a ‘story’, rooted in cultural context, artisanal traditions and the country’s reputation. European brands actively exploit this in their marketing, emphasising authenticity and heritage. Unlike mass-market Asian or American brands, European companies are perceived as ‘real’, emphasising handcrafted craftsmanship, provenance and durability. This explains the enduring demand for products from brands such as Louis Vuitton, Cartier, Hermès, Montblanc, BMW, and Porsche, despite their high prices.

3. Limited confidence in the domestic market and product quality issues

Despite technological advances, the Chinese domestic market struggles to trust the quality and safety of products. Regular scandals involving counterfeit and substandard food and cosmetics have reinforced the belief that imported goods guarantee safety and quality. The European CE mark, organic certifications, and EU food and cosmetic safety standards provide additional credibility. Consequently, Chinese consumers are willing to pay a significant premium for products labelled ‘Made in the EU’, particularly in the health, baby products, and cosmetics categories.

4. Cultural Westernisation and the symbolism of consumption

Over the past twenty years, Chinese society has become increasingly integrated into global cultural processes. Travel, studying abroad and digital media have facilitated the spread of Western consumption patterns. European brands are symbols of cultural capital, not just products. For Chinese consumers, buying Italian shoes or French perfume means embracing a different aesthetic, worldview and lifestyle. Furthermore, gift-giving plays an important social role in Chinese culture. Thanks to their reputation, European products are considered the most suitable gifts, particularly within the business community. This further stimulates demand for watches, accessories, and cosmetics.

5. Authenticity deficit and the phenomenon of ’emotional value’

The modern Chinese market is flooded with technologically advanced yet impersonal products. European goods offer emotional value based on history, design and a sense of belonging to a cultural tradition. A prime example of this is the Chinese interest in wine and gastronomy. French and Italian wines are purchased not only for their taste, but also as part of a ritual that is associated with sophistication and the European way of life. Thus, European goods satisfy the intangible needs of Chinese consumers by offering a sense of authenticity, beauty and cultural connection.

6. Development of logistics, e-commerce, and digital imports

Cross-border e-commerce systems such as Tmall Global, JD Worldwide, and Kaola have significantly simplified access to European goods for Chinese consumers. The digitalisation of import processes and transparent certification have eliminated intermediaries and made European brands more accessible. At the same time, social media platforms such as WeChat, Xiaohongshu and Douyin have become powerful promotional tools where consumers can exchange reviews and advice.
Consequently, technological infrastructure has become a catalyst for widespread interest in European quality, particularly among the younger generation.

7. Diversification of investments and capital export through consumption

For wealthy Chinese citizens, purchasing European goods is not just a form of consumption; it is also a means of diversifying their assets. Buying real estate, art, cars or watches is seen as a means of preserving capital outside China. A combination of economic factors, currency restrictions and growing uncertainty within the country means that overseas consumption is one of the few legal forms of ‘outward investment’ available to individuals.

8. Social media and the formation of a new aesthetic

Generation Z in China is actively forging a new identity through visual platforms. For them, European brands are not just objects, but elements of visual self-expression too. Influencers and bloggers create content in which European style symbolises taste and sophistication. Consequently, European products acquire a cultural function, helping young Chinese people to construct a self-image based on aesthetics and individualism.

Final analysis

The popularity of European goods in China is the result of a complex interplay of economic, cultural and symbolic factors. On the one hand, rising incomes and a maturing middle class create an objective demand for quality. On the other hand, cultural dynamics, distrust of the local market and a desire for individuality mean that European goods are becoming part of the new social identity of the Chinese people. This combination of material prosperity, cultural ambition and emotional value makes European products a strategic element of Chinese consumption. For European brands, China is not just an export market, but a cultural partnership where success depends on combining European authenticity with Chinese sensitivities regarding symbols, status and digital interaction.

The economic impact of Chinese demand for European goods is evident in the figures

the European Union’s trade relations with China have become a key driver of profitability for the European industrial and luxury consumer sectors. According to Eurostat, EU goods exports to China in 2024 amounted to approximately €213.3 billion. However, the impact of Chinese demand on the European economy cannot be measured solely by ‘factory-to-EU’ shipments. Chinese consumers generate additional revenue for Europe through various channels, including domestic consumption, international tourism, luxury shopping in Europe, European real estate purchases, and education at European universities. This revenue is not always reflected in export statistics.
The structure of European exports to China in 2024 can be simplified into five segments:

1. Industrial equipment and transport machinery

Countries: Germany, Italy, the Netherlands and France, as well as other industrialised EU countries. This includes:

• machine tools and production lines;
• automation components;
• industrial electronics;
• premium cars and spare parts.

This segment is characterised by its high technological complexity, and by China’s dependence on European engineering expertise for a variety of specialised equipment. In this market, Europe competes less on price and more on technology and precision. The typical operating margin for European industrial manufacturers on export contracts in this sector can range from 8% to 15%. For certain niches (e.g. unique machine tools, medical equipment and measuring systems), the margin can be higher due to the products’ uniqueness, lack of substitutes and after-sales service contracts. Furthermore, equipment delivery almost always comes with a service contract including maintenance, software updates, personnel training and spare parts. This service creates an additional profit line for European suppliers and effectively establishes a long-term relationship between Chinese industrial clients and European suppliers.

2. Chemicals and pharmaceuticals

The European Union remains a strategic supplier of high-tech chemical substances, specialised materials, and pharmaceuticals. Margins here are higher than in heavy engineering. In the pharmaceuticals and medical devices sector, company margins often exceed 15–25%, particularly in the patented or regulatory-protected segment. This means that for every €10 billion of drugs and medical solutions supplied, European companies generate a disproportionately large share of net profit. This is a critically important sector for the EU. China is a huge market for oncology, cardiology, geriatric health and aesthetic medicine drugs. China’s ageing population is driving long-term demand in this area.

3. Premium cars and components

German brands (Mercedes-Benz, BMW, Audi and Porsche) and premium European sports cars remain status symbols for Chinese buyers. Brand margins in the premium car segment can be significantly higher than in the mass market due to brand name, options, customisation and after-sales service. Unlike in the EU domestic market, where manufacturers often operate at the limits of price elasticity, in China a car is sold as a symbol of success. In other words, buyers pay not only for transportation, but also for the social status that comes with it. This means that the actual profitability of car and parts exports to China for European companies is among the highest in terms of ‘profit per euro of export’. It is also important to consider that exports include more than just finished vehicles. These include critical components such as engines, transmissions, interior electronics and safety systems, which can command a very high markup.

4. Luxury goods, fashion accessories, watches and jewellery

French, Italian and Swiss brands (fashion, leather goods, jewellery and watches) benefit from Chinese demand through two channels: Direct export to official distributors in mainland China and sales to Chinese customers in Europe (tourism, shopping tourism and bypassing domestic prices in China). In this segment, brands’ gross margins are among the highest in the economy. It is not uncommon for the cost of a product to be several times lower than the final price. Essentially, this is the export of an intangible asset: a brand, cultural capital and European origin. This explains why, even though the volume of physical deliveries (in euros) is smaller than that of cars or pharmaceuticals, the net profit share here is colossally high. In other words, every 5 billion euros of luxury sales to Chinese consumers can generate a net profit equivalent to 15–20 billion euros in the mid-tech segment.

5. Food, wine, alcohol, delicacies and the “European lifestyle”

Demand is growing for wine, organic products, European-origin baby food, cheeses, olive oil and chocolate. While this is a relatively small volume in absolute terms compared to cars, it is strategically important. Why? Because it directly increases the perceived value of European products. These purchases serve as an ‘entry point’ into the European way of life. This is a valuable intangible export position for the EU: the more China associates quality of life with Europe, the easier it will be for the EU to sell cars, cosmetics, and education. Wine and gastronomy enjoy a stable origin premium, meaning margins above the food industry average.

So what is the real profit for Europe from Chinese buyers?

Europe’s income from China doesn’t end with merchandise supplies. Chinese consumers generate revenue for European economies through three additional channels which export statistics either partially or not at all capture:
1. Tourism and shopping tourism: Chinese tourists visiting European capitals spend money on luxury goods, cosmetics, watches, pharmaceuticals and food. These transactions occur within the EU, meaning the revenue flows directly to the European retail sector. This is effectively ‘export on the spot’: money from China enters Europe and immediately finds its way into European businesses. Chinese consumers remain one of the most significant sources of revenue for the luxury sector. This turnover also has a high profit margin – luxury retail in Paris, Milan and Zurich is essentially a high-margin export industry; only the border crossing is that of the consumer, not the product itself.

2. Education
Chinese students pay tuition fees to European universities, especially in the UK, the Netherlands, France and Germany. This represents a net export of educational services. Universities, colleges and language schools receive foreign exchange earnings directly. Legally, these payments represent the export of services, but economically, they represent stable, long-term relationships: students live in Europe for several years, spending money on housing, transport and food. This is strategically valuable for host countries as the education sector has a high added value and international students also subsidise the domestic system (in some jurisdictions, their fees are higher than those of local students).

3. Real estate and golden visas
Chinese private investors are purchasing residential properties in southern Europe (Malta, Greece, Cyprus and Italy), as well as commercial real estate and stakes in historic restoration projects. This represents a direct influx of capital into European assets.

Europe makes money twice here: Firstly, on the sale of the asset (premium for location, residence permit and EU status) and secondly, on transaction support (notaries, tax consultants, law firms, management companies, developers and insurers). Such legal and consulting services are a high-margin business. For a number of jurisdictions, this is already an intentional model for attracting wealthy foreigners.

However, since exports to China are heavily dominated by machinery and equipment (a large but lower-margin category) and pharmaceuticals and luxury goods (a smaller volume but high-margin category), the average value for all exports will not be extremely high. Nevertheless, it certainly does not equal the margin of ‘regular EU industry’. In other words, it is not 3–5%, as with a mass industrial contract, but significantly higher. If we conservatively assume that the average operating margin for large export categories to China is in the range of 12–18%, then from €213.3 billion in export revenue, we can estimate the potential operating profit of European companies at approximately €25–35 billion per year from exports to China alone. This is a rough estimate, not an official figure, but it reflects the economic reality. Chinese demand generates turnover for Europe as well as tens of billions of euros in annual profits. Taking additional channels into account, such as tourism, luxury shopping in the EU, education of Chinese students, real estate sales and related legal services, the actual annual financial impact for Europe is higher than purely commodity-based statistics indicate. These flows are not fully reflected in the ‘goods exports’ category, but they bring money from China to Europe and boost the profitability of European high-value industries.

Strategic implications for Europe

• Chinese consumers directly subsidise Europe’s most profitable sectors. The luxury, pharmaceutical, engineering and premium automotive sectors are all tied to Chinese demand. This means that the sustainability of marginal EU industries depends partly on Chinese consumer sentiment.
• China has become a “customer” of Europe as well as a producer. Historically, the narrative has been: Europe buys cheap goods from China. This is still true: EU imports from China in 2024 are estimated at €517.8 billion. However, the flip side is that China buys expensive goods, services, technologies and status symbols from Europe. In other words, Europe sells to China the products for which it has the greatest added value and competitive advantage. This is the key to European profitability.
• However, there is a risk of increasing technological import substitution. China is rapidly developing its own high-precision engineering, medical technology, cosmetics, automobiles (including electric vehicles) and luxury domestic brands. If Chinese domestic manufacturers succeed in replacing European technologies or the symbolic value of European brands, European export margins will be the first to suffer.
• Europe’s response involves not only market protection, but also localisation in China. Many European brands have shifted from a simple export model to researching Chinese demand, adapting products for China and manufacturing some products in China, while retaining key competencies and profits in Europe (design, branding, IP, patents and strategic components). This reduces political risks while maintaining cash flow.

Results: Europe is making money from the Chinese consumer in several ways.