site.btaChina-EU Commerce Chamber Secretary General: Schengen, Eurozone Entry Could Turn Bulgaria into Chinese Business' Bridge to Europe

Bulgaria's membership in the Schengen area and the eurozone could turn the country into a bridge for Chinese companies to the European market, said Fang Dongkui, Board Member and Secretary General of the China Chamber of Commerce to the European Union (EU), during the Bulgaria-China Business Forum held at the InterContinental Sofia hotel on Monday.

The event was organized by the Bulgarian Chamber of Commerce and Industry with the assistance of the Ministry of Economy and Industry and the Embassy of the People's Republic of China in Sofia. The forum was a tie-in with the 18th session of the Bulgarian-Chinese Intergovernmental Mixed Commission on Economic Cooperation, hosted by Sofia.

Fang Dongkui highlighted Bulgaria's accession to the Schengen area and the upcoming adoption of the euro are prerequisites for improving logistical efficiency and facilitating trade.

“This will not only further expand bilateral trade, but also provide a platform for Chinese companies to connect with the entire European market, using Bulgaria as a kind of hub,” he said.

According to him, joining the Schengen Area will not only significantly ease the movement of people, capital, and goods, but also create favorable conditions for Chinese investment projects and especially new opportunities under the Belt and Road Initiative.

“Bulgaria’s accession to the Eurozone will bring greater convenience to Chinese investors, such as direct transactions in euro, reduced currency exchange fluctuations, lower conversion costs, and easier cross-border trade. Therefore, this could turn Bulgaria into an important bridge to the European market,” said Fang Dongkui.

He said that this is an event of particular significance. It is the first time that the China Chamber of Commerce to the EU has organized its members to participate in a prestigious forum in Bulgaria.

“The response from Chinese companies demonstrated the deep respect they have for Bulgaria as an important partner,” he said, adding that around 20 Chinese companies from various sectors are participating in the forum in the country.

“They are not only leaders in their respective fields, but also pioneers with deep roots in the European market and experience in international business. They understand well the strategic importance of Bulgaria in Europe,” he said.

Fang pointed out that Bulgaria has “unique market advantages” and “broad prospects for economic cooperation.”

"In recent years, trade and economic relations have developed successfully. China has become one of Bulgaria’s most important trading partners outside the EU. From a trade perspective, China’s exports to Bulgaria mainly include electronics and communications equipment, machinery, auto parts, and consumer goods, while Bulgaria’s exports to China consist of various agricultural products, rose oil, wine, and some other types of goods. This complementary trade structure provides a solid foundation for deepening cooperation between the two countries," he said.

Fang Dongkui emphasized that Bulgarian agricultural and food products are popular on the Chinese market, including wine, dairy products, honey, and others, adding that this opens up broad opportunities for diversifying bilateral trade.

Among Bulgaria’s advantages as an investment destination for Chinese businesses, he highlighted its favorable geographic location, stable and friendly bilateral relations, macroeconomic stability, skilled human resources, and government policies that promote investment. "Bulgaria’s well-developed legal system, continuously improving business environment, competitive tax policies, and highly qualified workforce make it one of the most attractive countries for investment in Central and Eastern Europe," said Fang Dongkui.

He noted that in 2024, bilateral trade between the two countries exceeded USD 4 billion, while China’s direct investments reached USD 165 million.

Fang Dongkui pointed out that Chinese companies still face significant restrictions in their operations across Europe.

“Economic and trade cooperation between China and Bulgaria is inevitably affected by the political environment in the European Union and geopolitical factors. For example, under the EU regulation on foreign subsidies, a Chinese company was recently subjected to an investigation related to a project for the supply of electric locomotives in Bulgaria, which ultimately forced it to withdraw at a significant loss,” he said.

“We appreciate the Bulgarian Government’s efforts to communicate promptly with the European Union, and we also call on Bulgaria to continue actively advocating at the EU level, so that it addresses the real needs of its Member States in areas such as infrastructure, digital development, and green economies,” he said.

He outlined the expectations of Chinese companies toward Bulgaria - a more stable, transparent, and attractive institutional environment, equal treatment for Chinese digital companies, and streamlined visa and administrative procedures.

“We believe that an optimized and open business environment will significantly enhance Bulgaria’s international competitiveness, attract more high-quality Chinese investments, and lead to mutual benefit and shared development,” Fang Dongkui concluded.