From July 10 to 12, 2025, the “The Tailor – Made Finance & Innovation Visit in Chengdu” was successfully held in Chengdu. Organized by the China Innovation Finance Institute | Chengdu, the roadshow served as a flagship initiative under the Chengdu Finance Week empowerment platform. It received strong participation and support from municipal and district-level government bodies as well as over one hundred outstanding enterprises.
Focusing on cross-border investment and financing opportunities in t Central Asia, Europe, and the Middle East, the event adopted a two-way roadshow model featuring field research and visits, project presentations, doors-closed roundtable discussions, and MoU signings. It effectively connected Chengdu’s leading enterprises with international investors and welcomed high-level representatives from government agencies, regulatory authorities, international organizations, and service institutions from Kazakhstan, Germany, the United Kingdom, and other countries. Hundreds of local industry leaders and business association representatives also attended.
During the European session, the spotlight was on Germany and the United Kingdom. Multiple experts were invited to provide in-depth analysis of the investment outlook between China and Europe. Yu Wang, Senior Expert at the Roland Berger Institute, delivered a keynote speech offering her professional insights into the European economy and China-Europe trade and investment.
Below is the keynote speech delivered by Ms. Yu Wang, Senior Expert at Roland Berger Institute.
I am delighted to have the opportunity to share some insights with you today. Roland Berger is a strategic management consulting firm headquartered in Munich, Germany. With more than 50 offices worldwide and over 3,000 employees, the firm provides global expertise across a wide range of industries. I am based at the Munich headquarters, where I am responsible for global macroeconomic research.
My presentation today consists of two main parts.
Part I: European Economy
Overall, the economic outlook for the euro area in 2025 can be summarized by the following key features:
1 . Slowing GDP growth. Euro area GDP growth is expected to slow in 2025, as structural weaknesses and the fading of post-pandemic rebound effects weigh on economic activity. In an environment of heightened uncertainty, private consumption will remain the main growth driver, supported by a resilient labor market and easing inflationary pressures. However, investment and trade face mounting challenges due to escalating U.S. protectionism. Signals from Washington indicate that Europe can no longer delay the development of its own defense infrastructure, necessitating higher defense expenditures. In March 2025, the EU unveiled an €800 billion rearmament plan amid funding disputes and procurement uncertainties. Given strained public finances and rising interest costs across much of Europe, meeting these defense requirements poses a significant fiscal challenge.
2 . Expansion of the euro area. Bulgaria is set to join the euro area in 2026, marking the first enlargement of the monetary union since Croatia’s accession in 2023. This step strengthens the influence of the euro and deepens economic convergence in Southeast Europe. By combining Bulgaria’s highly competitive labor costs with its rapidly growing IT outsourcing hub, new growth potential will be unlocked. For the EU, this development enhances cohesion and financial integration, while providing Bulgaria with greater stability and investment attractiveness.
3 . Rising trade frictions with the United States. The first wave of tariffs announced by the U.S. in April has already revealed the disruptive impact of a renewed cycle of tariff escalation between the United States and the EU. This adds further uncertainty to Europe’s economic outlook. Given Europe’s high reliance on external demand, new trade barriers could deal a heavy blow to European manufacturers.
4 . Lagging behind global peers. While the United States, China, and other major economies are experiencing stronger expansion, the euro area remains subdued. This weakness stems from structural rigidities, limited innovation momentum, and persistently tight financing conditions. Weak growth expectations, coupled with ongoing political uncertainty, have led international investors to remain cautious toward Europe, diverting capital to more stable and dynamic markets.
Part II: China-Europe Trade and Investment
1 . Global trends. From a global perspective, the new wave of globalization is no longer primarily driven by trade growth but rather by cross-border greenfield investment, particularly in industries with global value chains, such as electronics and automobiles. This shift is not only the result of factors such as geopolitics and the COVID-19 pandemic, but is also propelled by the resurgence of industrial policies worldwide. The revival of industrial policies has led to a restructuring of global supply chains, manifested in the concentration of high-end electronics industries in the United States and the shifting of America’s trade deficit with China toward intermediary trade partners. At the same time, the U.S. has introduced a range of measures, including tariffs, aimed at reshoring manufacturing and reducing its trade deficit.
2 . China-Europe dynamics. Focusing specifically on China and Europe, three key features stand out:
- High interdependence in goods trade
China and the EU remain highly interdependent in terms of goods trade, with machinery, electronics, and vehicles as the core product categories. Comparing 2023 with 2022, EU imports of automobiles from China rose by 22%, while exports declined by 15%.
- Services trade surplus for the EU
In services trade, China is the EU’s fourth-largest partner. The EU consistently maintains a trade surplus with China in this sector, particularly in intellectual property-related services.
- Stabilizing investment and rapid growth in greenfield projects
Post-pandemic, investment flows between China and Europe are stabilizing. Notably, greenfield investment in the new energy sector is expanding rapidly, with greater regionalization and localization along the upstream segments of the value chain. This evolution signals a broader shift in China’s globalization model.
Conclusion
In summary, my remarks today are intended as a brief overview. Should there be interest in specific aspects, I look forward to further discussion and exchange with you.
Thank you!
Senior Expert at Roland Berger Institute
Disclaimer: This article is compiled from the keynote speech delivered by Ms.Yu Wang at the 2nd Chengdu Finance Week. The opinions expressed by authors do not necessarily reflect the views of the China Innovation Finance Institute.
About Roland Berger
Roland Berger, founded in 1967, is the only leading global consultancy with European roots. The firm operates successfully in all major international markets, with 52 offices in 33 countries and more than 3,500 employees worldwide.
Roland Berger is an independent partnership owned by over 350 Partners. It provides comprehensive management solutions and consulting services to multinational corporations, non-profit organizations, and public institutions. Its areas of expertise include establishing strategic alliances, introducing new business models and processes, designing organizational structures, and formulating information strategies.
The firm has established various industry and functional competence centers across the globe. By effectively integrating these resources and drawing on expertise from different industries, Roland Berger delivers tailor-made management solutions to clients.
China has always been regarded as one of Roland Berger’s most important markets in its international development journey. Since undertaking its first project in China in 1983, the firm has set up offices in Shanghai, Beijing, Hong Kong, Taipei, and Guangzhou, with several hundred consultants. Over the decades, Roland Berger has established long-term strategic partnerships with numerous multinational corporations and Chinese enterprises.
