Chinese Firms use Sports Sponsorship to Strengthen their Position in Europe

Amid rising trade protectionism in the United States and weak domestic consumption, many Chinese companies are increasingly turning their attention to Europe, one of the world’s largest and most advanced consumer markets. Yet expanding in the EU remains challenging.

The experience of Chinese smartphone manufacturer Xiaomi highlights these difficulties. Xiaomi entered the French market in 2018 by opening its first franchise-operated store (Bloomberg, 2018), followed by several additional shops. Most of these stores were closed by 2022, and the company only announced its official return to the French market in late 2025 (Xiaomi, 2025). Beyond smartphones, Xiaomi is also planning to enter the European electric vehicle (EV) market from 2027 (Handelsblatt, 2025)

In an interview with the South China Morning Post (SCMP), Prof. Holger Görg, Ph. D. (KCG Managing Director) explained that Chinese firms face two major obstacles in Europe. These include persistent perceptions of lower product quality and broader public concerns that European brands might be crowded out of the market by Chinese competitors.

To address these challenges, some Chinese companies have turned to high-profile sports sponsorships to improve brand recognition and public perception. EV manufacturer BYD and home electronics group Haier, for example, have sponsored major European sporting events such as the “UEFA Euro 2024” football championship and the 2025 French Open tennis tournament, trying to improve their brand and product image in Europe. Görg adds that “Increased visibility at sports beloved by Europeans could help Chinese brands appear less threatening”.

Whether this strategy will translate into lasting market success remains uncertain. Although BYD’s share of the European EV market increased rapidly in 2025, it still represents only a small portion of overall sales, underscoring the ongoing challenges Chinese firms face in Europe.

The interview with the SCMP “Slick advertising, sports sponsorships help boost Chinese brands’ fortunes in Europe” is available here.

Contact:
Prof. Holger Görg, Ph.D. (holger.goerg@ifw-kiel.de; +49(0)431-8814-258)