A Growing Demand for Local Expertise

As Chinese companies expand their presence across Europe, the demand for local professional services is growing in parallel. What once consisted mainly of trade relationships increasingly involves local subsidiaries, investments, logistics networks and research operations across the European Union.

According to research from MERICS and the Rhodium Group, Chinese foreign direct investment in the EU and the UK reached €10 billion in 2024, representing a 47% increase compared to the previous year. Europe also captured 53.2% of Chinese investment flows into high-income economies, making it the leading destination among developed markets. (rhg.com)

At the same time, China-EU trade remains enormous. The total volume of trade in goods between the two regions exceeded €730 billion annually, creating a vast ecosystem of suppliers, distributors, and corporate partnerships.

Behind these flows lies a practical reality:
companies entering Europe must rely heavily on local service providers to navigate regulatory, financial and operational complexity.

The Most Sought-After Services by Chinese Companies in Europe

When Chinese companies establish operations in Europe, several categories of professional services consistently emerge as essential.

1. Accounting and Tax Advisory

Among the first services required by foreign companies operating in Europe are accounting, bookkeeping and tax compliance.

European tax systems are highly fragmented. While the European Union provides a common regulatory framework in certain areas, taxation remains largely governed at the national level. Corporate tax rates, reporting requirements and administrative procedures vary significantly between jurisdictions.

Companies entering the EU typically need support with:

• statutory accounting and financial reporting
• corporate income tax filings
• VAT registration and compliance
• payroll and employee taxation
• financial reporting for parent companies

For firms operating across multiple EU countries, managing VAT obligations alone can require registrations and reporting in several jurisdictions simultaneously.

As a result, accounting firms frequently become long-term operational partners for Chinese subsidiaries.

2. Legal and Regulatory Advisory

Legal advisory is another critical area of demand.

European business relationships rely heavily on formal contracts and regulatory compliance. For foreign companies unfamiliar with the legal environment, local legal expertise is essential in areas such as:

• corporate formation and governance
• shareholder agreements
• commercial contracts
• regulatory compliance
• dispute resolution

Regulatory complexity is frequently cited as a major challenge by Chinese investors. In surveys of Chinese firms operating in Europe, more than half identify regulatory complexity and legal barriers as key obstacles to expansion. (KPMG)

Legal advisors therefore play an important role not only in structuring companies but also in ensuring ongoing compliance with local regulations.

3. Corporate Services and Company Formation

Before a company begins operations in Europe, it must establish a legal entity within a specific jurisdiction.

Corporate service providers help Chinese companies manage procedures such as:

• company registration
• local directorship requirements
• corporate governance documentation
• compliance with national company law

These services are particularly relevant in countries frequently chosen by Chinese investors, including Germany, Hungary, Poland, France and the Netherlands.

Germany alone remains one of the primary European hubs for Chinese business operations, with many firms managing their wider European activities from there. (KPMG)

4. Market Entry and Business Consulting

While some Chinese companies establish operations through acquisitions or direct investments, many first enter the European market through strategic partnerships with local firms.

Consulting services are often required to help companies understand:

• market structure and competitive landscape
• industry regulations
• distribution channels
• customer expectations and cultural differences

These services can include market research, strategic advisory and support in identifying local partners.

5. Logistics, Supply Chain and Operational Support

The growth of Chinese manufacturing and e-commerce companies in Europe has also increased demand for operational services such as:

• logistics management
• supply chain coordination
• warehousing and distribution
• customs and import compliance

These services are particularly relevant for companies involved in consumer electronics, automotive components and e-commerce distribution.

Why Professional Services Matter

For companies entering unfamiliar markets, professional services are not merely administrative support—they form the operational infrastructure that allows businesses to function within local regulatory systems.

Europe’s legal and economic landscape is defined by:

• multiple jurisdictions
• complex tax frameworks
• strict regulatory oversight
• diverse market conditions across countries

Without local expertise, companies risk costly mistakes in areas such as tax compliance, corporate structuring or contractual obligations.

Professional advisors therefore play a critical role in reducing operational risk and enabling companies to establish stable long-term operations.

A Structural Opportunity for European Service Firms

The expansion of Chinese companies in Europe represents a significant opportunity for professional service providers.

Thousands of Chinese-owned subsidiaries now operate across the European continent, and investment activity has begun to recover after several years of decline. With Chinese FDI in Europe rising again and trade volumes remaining among the largest in the world, the demand for local expertise is likely to continue growing.

For accounting firms, law firms, consultants and corporate service providers, Chinese companies represent a growing group of international clients seeking reliable partners within the European market.

Conclusion

The increasing economic integration between China and Europe is reshaping the demand for professional services across the continent.

Chinese companies entering European markets require not only market access but also legal, financial and operational infrastructure that allows them to operate within a complex regulatory environment.

Accounting firms, legal advisors, corporate service providers and consultants are therefore becoming an essential part of the ecosystem supporting Chinese business activity in Europe.

As cross-border investment and trade continue to evolve, the role of these services will only become more central to the functioning of international business between China and Europe.