Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Bulgaria’s potential membership in the Schengen area and its upcoming adoption of the euro could position the country as a crucial gateway for Chinese businesses seeking access to the broader European market, according to Fang Dongkui, Board Member and Secretary General of the China Chamber of Commerce to the European Union (CCCEU).
Logistical and Trade Efficiency
Speaking at a forum in Sofia, organized by the Bulgarian Chamber of Commerce and Industry with support from the Ministry of Economy and Industry and the Chinese Embassy, Dongkui emphasized that these integrations are vital for enhancing logistical efficiency and streamlining trade operations.
He noted that such advancements would not only expand bilateral trade between China and Bulgaria but also establish Bulgaria as a strategic hub for Chinese companies to engage with the entire European market.
Benefits of Schengen and Eurozone Integration
Accession to the Schengen Area is expected to significantly facilitate the movement of people, capital, and goods, thereby creating more favorable conditions for Chinese investment projects within Bulgaria.
Similarly, joining the Eurozone would offer substantial conveniences for Chinese investors, including direct transactions in euros, reduced currency exchange rate fluctuations, lower conversion costs, and simpler cross-border trade, further solidifying Bulgaria’s role as an important European bridge.
Growing Chinese Engagement
This forum marks the first instance of the CCCEU organizing its members to participate in a significant event in Bulgaria, signaling a growing interest in the region.
Approximately 20 leading Chinese companies from various sectors, with established presences in the European market and extensive international business experience, attended the forum.
Bulgaria’s Economic Appeal
Bulgaria presents unique market advantages and significant prospects for economic cooperation, with China already standing as one of its most important trading partners outside the EU.
Key Bulgarian exports popular in the Chinese market include agricultural and food products such as wine, dairy items, and honey.
Investment Climate and Challenges
Dongkui highlighted several factors making Bulgaria an attractive investment destination, including its strategic geographic location, stable relations, macroeconomic stability, skilled human resources, and pro-investment government policies.
Its well-developed legal system, improving business environment, competitive tax policies, and highly qualified workforce further enhance its appeal for investments across Central and Eastern Europe.
In 2024, bilateral trade between China and Bulgaria surpassed USD 4 billion, with China’s direct investments reaching USD 165 million.
Despite these opportunities, Chinese companies operating across Europe continue to face challenges, exemplified by recent investigations under EU regulations concerning foreign subsidies.
Expectations for Bulgaria
Chinese companies express a desire for Bulgaria to cultivate a more stable, transparent, and attractive institutional environment, ensure equal treatment for Chinese digital companies, and streamline visa and administrative procedures.
An optimized and open business environment is anticipated to boost Bulgaria’s international competitiveness, draw in more high-quality Chinese investments, and foster mutual benefit and shared development.
