An analysis for European B2B companies: where real demand exists for local services and partners.
For most of the past decade, the story of Chinese investment in Europe was one of decline. Since the peak of 2016–2017, the flow of capital from China had been shrinking year after year.
That narrative is now reversing – in a way that creates a concrete, measurable opportunity for European B2B service providers.
In 2025, Chinese foreign direct investment in the EU and the United Kingdom increased by 67%, reaching €16.8 billion — its highest level since 2018 and the second consecutive year of growth. Europe accounted for nearly one-quarter of all Chinese foreign investment worldwide, compared with 17% a year earlier.
The data points to a clear rebound, although the decline in the value of newly announced greenfield projects suggests that its durability is not yet guaranteed. Regardless of what happens next, a growing number of Chinese companies are currently establishing and expanding operations in Europe – and most of them will require local support at some stage.
The question every European business service provider should ask is: what exactly are these companies looking for, and am I visible when they begin their search?
Why greenfield projects create demand
One important nuance often missed in the headlines concerns how Chinese companies are investing. The rebound in 2025 was driven by two channels, but mergers and acquisitions are not the most relevant one for most European service providers.
More than half of Chinese investment in Europe in 2025 came through greenfield projects – the construction of facilities and operations from scratch. This segment increased by 51% to a record €8.9 billion and remained the main channel for Chinese investment in the region. By comparison, mergers and acquisitions grew more strongly in percentage terms – by 89% to €7.9 billion – but generate significantly less demand for new local services.
This distinction has fundamental business importance. A company that acquires a European business inherits its existing network of service providers: accountants, law firms, logistics operators and agencies. Demand for new local services is therefore limited.
A company building its operations from scratch, however, starts with nothing. It must register a company, understand local employment and tax rules, find warehouse space, establish a marketing presence and organise regulatory compliance.
The structure of these investments therefore suggests that demand for local services is not driven solely by a short-term rebound in transaction values. It is embedded in the way Chinese companies are currently entering Europe. The dominance of greenfield investment is excellent news for European service providers.
What types of companies are currently entering Europe?
Behind the macroeconomic figures are specific types of companies with specific needs. Demand is currently concentrated in three main areas.
EV, battery and clean-tech manufacturers and their supply chains
Automotive remains the largest individual sector, attracting more Chinese capital in 2025 than any other industry.
Major companies such as CATL, Gotion and BYD are building gigafactories, followed by an entire upstream supply chain. Manufacturers of components such as battery cell casings, cathodes and separators are following their Chinese customers into Europe.
Alongside major battery projects, a new and more numerous wave of smaller greenfield investments is emerging in clean technology, manufacturing and energy production.
European regulators are also placing increasing emphasis on local content requirements in these projects. This is not only political pressure, but a direct driver of demand. The more components and services that must be sourced locally, the more European suppliers, engineers and advisers become involved in the value chain.
Chinese e-commerce and logistics companies
This is probably the fastest-growing segment and one that generates particularly broad demand for local services.
Shein, Temu, JD.com and related logistics operators are expanding their warehousing infrastructure across Europe. In the United Kingdom alone, Chinese companies leased more than 200,000 square metres of warehouse space in 2025 – a level close to the records reached during the pandemic-driven boom.
Expansion also includes Germany, France and Poland, which remains an important logistics and manufacturing hub for companies supporting trade and supply chains between China and Europe.
The key turning point comes when platforms move from direct shipping from China to local warehousing. At that point, they become subject to the full scope of European regulation, including VAT, consumer protection, product safety and GDPR. This generates substantial demand for local legal, tax and content teams.
Chinese automotive manufacturers building sales networks
KPMG research into the impact of Chinese automotive OEMs in Europe reveals a clear pattern: Chinese car manufacturers are looking for partners able to provide a broad range of market-entry services, including sales, after-sales support, administration, financing and logistics.
Because they often view Europe as a single region, they tend to prefer partners with broad geographical coverage over providers with a narrowly local profile.
Geographically, Chinese capital in 2025 was concentrated in three main destinations: Hungary, with €3.9 billion driven largely by EV and battery projects; Germany, with €2.5 billion; and France, with €1.9 billion and the fastest growth. Demand is also spreading back towards Europe’s traditional “Big Three”, alongside Hungary and Central Europe.
What specific services do they need?
Taken together, these are the B2B services Chinese companies most frequently require when entering and scaling in Europe:
- Tax advisory and accounting – VAT registration, cross-border settlements, transfer pricing, structural optimisation and compliance with local tax systems.
- Legal services – company formation and corporate structures, employment law, regulatory compliance, investment screening, data protection under GDPR and partner agreements.
- Logistics and fulfilment – warehouse space in strategic corridors, transport, last-mile delivery, supply-chain management and customs and tax compliance.
- Marketing and digital presence – brand building in European markets, multilingual content, advertising through Meta, TikTok and LinkedIn, localisation and KOL or influencer marketing.
- Market-entry and partnership advisory – market analysis, positioning, sales and after-sales support and introductions to local partners with broader geographical reach.
- Environmental and ESG compliance – permits, local-content requirements, audits and advisory support for manufacturing projects.
Changes to EU customs rules for consignments valued at up to €150 are an additional catalyst for demand in the e-commerce segment. They increase pressure on companies to localise their operations and organise their European customs and tax compliance.
Why do they struggle to find the right partners?
One problem appears repeatedly across almost every analysis and every category of Chinese company entering Europe – and it is precisely this problem that creates a market for European services.
Chinese companies are accustomed to a relatively uniform domestic regulatory environment. Europe appears to them as a patchwork of different regulations, standards and languages.
Fire-safety requirements differ. Employment law differs. ESG obligations differ. Tax systems vary between jurisdictions. Operating across several countries at once can quickly become overwhelming.
The regulatory environment is also becoming more restrictive. In December 2025, EU institutions reached an agreement to strengthen foreign investment screening, including a requirement for all member states to operate national monitoring mechanisms and measures intended to close the “subsidiary loophole”.
ARC Group summarises the situation precisely: for Chinese companies, global expansion now requires comprehensive capabilities in legal compliance, negotiation, cultural integration and operational execution — not simply access to capital.
Success depends on combining Chinese strengths in areas such as data, logistics and innovation with local networks, strict data-protection rules and regional customer preferences.
Even when a Chinese company knows what kind of partner it needs, however, it faces a discoverability barrier.
The search for a partner often begins within the Chinese-language digital environment: through local search engines, industry content, WeChat, WeCom, recommendations and enquiries submitted to specialised platforms.
A strong European provider that is present only in English-language channels may therefore be more difficult to find and evaluate, even when it is ideally suited to the company’s needs.
The barrier is not a lack of expertise. It is a lack of visibility and clarity: will a Chinese decision-maker find your company, and will they understand your specialisation before the first contact?
What should a European company do to be considered?
There are three practical conclusions.
First, the demand is real. This is supported not by forecasts, but by hard data from 2025: €16.8 billion in investment, a second consecutive year of growth and more than half of the total taking the form of greenfield projects, which generate the greatest need for local support.
Eurostat also counted 2,621 multinational enterprise groups controlled from China and operating in the EU and EFTA in 2023. This is an existing base of companies requiring services today, independently of new investment.
Second, the problem is not whether demand exists, but whether your company is visible at the right moment.
A Chinese company preparing to enter a market may begin its search for a tax adviser, law firm or logistics operator within the Chinese-language digital environment. A provider present only in English-language channels may therefore remain invisible.
Third, in projects covering several countries, providers able to serve a broader geographical area or coordinate cooperation with other specialists may have an advantage.
This does not mean that smaller, highly specialised providers are in a weaker position. In a specific market, they may be exactly what the client needs.
The structure of Chinese investment in Europe – the dominance of projects built from the ground up, pressure to source locally and the challenge of navigating Europe’s fragmented and increasingly demanding regulatory environment – creates broad demand for local B2B services, particularly in greenfield projects.
The challenge for a European company is not whether demand exists. It is becoming visible and understandable to a Chinese decision-maker at the moment the search begins.
This is where EnterChina comes in. We help European companies present their expertise in Chinese and become visible in the environment where Chinese businesses begin searching for local partners.
Companies can also respond to specific requirements submitted through the platform.
See how your company could be presented to Chinese partners → [link]
Data sources: MERICS and Rhodium Group, “Chinese FDI in Europe: 2025 Update”; Eurostat; KPMG, “Impact of Chinese OEMs in Europe”; ARC Group; Council of the EU and European Commission materials on customs reform and the €3 duty applying from 1 July 2026; China Briefing; and GLP Europe. Financial data relates to 2025 investment figures, while the number of enterprise groups relates to 2023.