The Partnership Potential of Turkey and the People’s Republic of China
Turkey’s Customs Union Agreement with the European Union, which entered into force in 1996, has provided significant advantages to the national economy and exporting sectors. Under this agreement, industrial products exported from Turkey to European countries are exempt from customs duties. As electronic products fall under the category of industrial goods, exports of electronics from Turkey to Europe today are carried out with zero customs duties. This situation not only strengthens the competitiveness of existing manufacturers but also facilitates the access of newly established joint ventures in Turkey to the European market. Thus, it creates a strategic opportunity for both production capacity and Turkey’s international market position.
China’s position in global electronics manufacturing is well known. With its advanced technology, large-scale production capacity, and cost advantages, China has become the leader of the global electronics industry. Turkey, on the other hand, stands out with its geopolitical location, proximity to the European market, strong logistics infrastructure, and the customs duty advantages provided by the Customs Union. All these factors make strategic partnerships with China highly attractive. By combining China’s technological know-how in electronics with joint ventures established in Turkey, products can be exported to Europe with zero customs duties, which would mark a major leap in creating national added value.
The legal framework of this strategic opportunity is also clear. According to the Customs Union Agreement, industrial products, including electronics, are exempt from customs duties when exported to European Union countries. While agricultural goods and certain other sectors are excluded from this scope, duty exemptions in high-tech industries such as electronics provide Turkey with a significant competitive edge. This advantage can be further leveraged through investments made by Chinese manufacturers in Turkey. Establishing production facilities in Turkey would not only grant direct access to the European market but also create new employment opportunities for the Turkish workforce.
In addition, technology transfer is one of the most significant benefits of such partnerships. The transfer of technological advancements developed by China’s electronics industry to Turkey would strengthen domestic production capacity and, in the long run, enhance Turkey’s ability to develop its own technologies. In this way, Turkey could transform into not only a production and export hub but also a center where high value-added technologies are developed.
Within Turkey’s electrical and electronics sector, the European Union continues to be the most important export market. In 2019, the sector’s total exports reached approximately USD 11.24 billion, of which around USD 6.54 billion were directed to EU countries. This figure demonstrates Europe’s strong position in Turkey’s electronics exports and serves as an important baseline.
By 2023, about 44% of the sector’s exports—equivalent to USD 7.2 billion—were destined for EU countries. This share shows that Europe has remained both a stable and expanding market for the industry.
In the first four months of 2025, the sector’s exports totaled USD 5.38 billion. Considering that the year has not yet been completed, this significant volume highlights the sector’s potential to further strengthen its presence in the European market in the coming years.
Looking at the overall picture, it is clear that since 2019, the European Union has been an indispensable market for Turkey’s electrical and electronics exports. The data confirms both the strong historical ties and the promising growth potential for the future.
This ability is reflected in our company, Hedef Koç Consulting Company, which offers detailed consulting services for clarification and disclosure to operate in Türkiye and international markets. With solutions we offer in areas such as commercial consulting, company leasing, brand design and registration, comprehensive documentation, investments to benefit from government incentives, and market research, we aim to ensure our business partners achieve a strong and sustainable position in their target markets. You can find our company information and services at www.hedefkoc.com.
In conclusion, when Turkey’s Customs Union advantage with the European Union is combined with China’s global strength in electronics, a historic opportunity emerges for our country. If seized effectively, this opportunity could position Turkey as a regional hub in the electronics industry, increase export revenues, and directly contribute to national added value. Therefore, exporting electronics to Europe with zero customs duty through partnerships with China’s electronics industry is not only a commercial opportunity for Turkey but also a strategic development move.
Dr. Mert Özaydın / Expert Psychologist / Incentive Grant Support Expert / Expert
