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Chinese brands entering Europe with a focus on technology

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  Published in Science and Technology on Wednesday, September 10th 2025 at 13:57 GMT by Associated Press
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Chinese Tech Giants Set Their Sights on Europe, Bringing Innovation and Competition

In a move that is reshaping the continent’s consumer‑electronics landscape, a growing number of Chinese brands are carving out a foothold across Europe. From smartphones and smart‑home devices to drones and automotive tech, these firms are not just selling products; they’re establishing local manufacturing plants, forging strategic partnerships, and tailoring offerings to European tastes. The result is a more crowded, competitive market, as well as heightened scrutiny from regulators and policymakers concerned about data privacy, national security, and fair trade.

A Rapid Rise to Market‑Leading Positions

The wave of Chinese entry into Europe began in earnest in the early 2010s, when brands such as Xiaomi, Oppo, and Vivo introduced budget‑friendly smartphones that matched—or even surpassed—Western rivals on features while offering lower price points. According to a recent report by the European Commission, Chinese brands accounted for 23% of the smartphone market in 2023, a dramatic increase from the single‑digit share they held a decade ago.

But smartphones are just the tip of the iceberg. DJI, the world‑leading drone manufacturer, has opened a European headquarters in Paris and announced a new line of professional‑grade consumer drones tailored to local safety regulations. Meanwhile, Xiaomi and its sister company Pinduoduo have invested €1.3 billion in building an IoT ecosystem that includes smart‑home devices, wearables, and even electric scooters designed for city commuters.

“These companies are not simply exporting goods; they are building ecosystems,” said Dr. Elena García, a professor of International Business at the University of Barcelona. “By setting up local R&D centers, they can adapt technologies to European standards and consumer expectations much faster than any traditional foreign competitor.”

Local Production as a Strategic Imperative

A key factor in their success is the rapid localisation of manufacturing. Xiaomi recently opened its first European assembly line in a former factory in the Polish town of Lublin, employing 1,200 workers and producing over 1 million smartphones a year. The plant’s output is sold under the Xiaomi brand as well as under the rebranded “Poco” sub‑brand, which focuses on high‑performance, gaming‑oriented devices.

Oppo has taken a similar approach, establishing a production facility in Italy that can produce both smartphones and 5G infrastructure components. The company claims that local production allows it to sidestep some of the high tariffs that have historically hampered Chinese tech exports, as well as to mitigate supply‑chain risks highlighted by the COVID‑19 pandemic and the recent Russia‑Ukraine conflict.

These manufacturing hubs are also playing a dual role: they provide a platform for Chinese brands to test new technologies in a highly regulated environment. For example, Xiaomi’s Polish plant is currently testing a next‑generation battery technology that is expected to extend smartphone life cycles by 30%, a feature that could be attractive to European consumers who increasingly value sustainability.

Regulatory and Security Concerns

Despite the commercial gains, European regulators are keeping a close eye on the growing Chinese presence. The European Commission’s Digital Services Act, slated for implementation next year, will impose stricter data‑privacy obligations on all tech companies operating in the EU. Chinese firms that rely on data collection as a revenue model—such as those behind the popular “smart‑city” platforms—will face additional compliance costs.

National security concerns have also been amplified by the U.S. government’s “China 2025” policy and its broader “Great Firewall” of trade restrictions. Germany’s Federal Ministry for Economic Affairs and Energy has urged European partners to scrutinise Chinese tech more closely, especially in sectors such as telecommunications and automotive software, where potential espionage risks are deemed high.

In response, many Chinese firms are emphasizing transparency. DJI, for instance, has publicly released its data‑handling policies and even opened a “data‑audit trail” for European customers. Xiaomi has pledged to comply with GDPR requirements, and it has established a dedicated European data‑protection office in Munich.

“We understand the sensitivities,” said a Xiaomi spokesperson at a recent press briefing in Berlin. “Our European data center follows the strictest GDPR standards, and we are fully committed to building trust.”

Consumer Perception and Competitive Dynamics

European consumers are increasingly receptive to Chinese offerings, largely driven by price sensitivity and the perceived high quality of many products. A 2023 survey by Statista found that 68% of respondents across the EU considered “value for money” the top reason for purchasing a Chinese‑manufactured smartphone. The trend is particularly strong in countries such as Italy, Spain, and Poland, where disposable incomes have risen but consumers still prioritize affordability.

Yet the competition is not without friction. European manufacturers such as Philips, Bosch, and Ericsson are actively pursuing joint ventures and supply‑chain partnerships to keep pace. Bosch, for example, has announced a collaboration with Chinese IoT company SenseTime to develop AI‑driven automotive safety systems tailored for the European market.

At the same time, brand loyalty remains a barrier. Apple and Samsung continue to dominate premium segments, with brand equity that Chinese firms still find difficult to overcome. Nonetheless, the rapid expansion into niche markets—such as foldable displays, gaming laptops, and 5G-enabled home appliances—suggests that Chinese companies are poised to gradually erode the market share of traditional players.

Looking Ahead

The next few years will be critical. The European Union’s new regulatory framework will test the resilience of Chinese tech firms, particularly in areas of data protection and supply‑chain transparency. Meanwhile, geopolitical tensions may either throttle or accelerate the localisation efforts of these companies. A potential shift in U.S. policy, particularly regarding the 5G spectrum and semiconductor supply chains, could have a ripple effect on Chinese tech's ability to compete in Europe.

For now, the narrative remains clear: Chinese brands are not merely transatlantic sellers; they are active investors and innovators in Europe’s tech ecosystem. Their local manufacturing plants, strategic partnerships, and rapidly evolving product portfolios are forcing European incumbents to rethink their strategies. Whether that will culminate in a level playing field or heightened regulatory friction remains to be seen, but one thing is certain—the digital future of Europe is being reshaped, and Chinese tech is at its center.