According to a survey released on Monday, December 9th, Chinese businesses in the European Union indicated that the business environment has been deteriorating for the fifth consecutive year, with geopolitical tensions intensifying and anti-China sentiment hindering operations.
The survey conducted by Roland Berger International Management Consulting Company for the Chinese Chamber of Commerce in the EU targeted approximately 200 Chinese enterprises. Amid tariffs imposed by the EU on Chinese-made electric vehicles and worsening China-EU relations, the survey gathered their perspectives.
The results revealed that Chinese enterprises have rated the overall business environment in the EU as deteriorating for the fifth consecutive year, with 68% of respondents believing that the situation worsened over the past year. More than half of them stated that the EU market is no longer fair and open.
Chinese businesses highlighted obstacles in participating in public tenders compared to companies from other countries, lower chances of qualifying for subsidies, and longer investment review times.
The major challenges cited were increasing trade barriers, rising labor costs, and escalating geopolitical tensions.
Chinese companies expressed concern over the EU’s current focus on economic security and “de-risking” in dealing with Beijing, with much of it centered on reducing the EU’s dependence on China, especially in critical raw materials. Around 90% of Chinese enterprises indicated that this is impacting their operations.
In the electric vehicle sector, nearly two-thirds of companies reported a drop in sales in the European market, over 80% expressed reduced confidence in investment, and concerns were raised about cooperation with European partners.
Additionally, the German Chamber of Commerce in China stated last Wednesday, December 4th, that amid China’s economic slowdown and intensifying price wars, the business confidence of German enterprises in China is at an all-time low.
Citing a survey, the German Chamber noted that over half of German companies indicated a worsening industry situation this year, with only 32% predicting an improvement by 2025, marking the lowest level since records began in 2007.
Meanwhile, the British Chamber of Commerce in China released a report on the business confidence of British enterprises in China for the 2024-2025 period on December 3rd, stating that China’s business environment has undergone permanent changes compared to pre-pandemic conditions. Despite Beijing’s recent stimulus measures, the economy remains sluggish.
(Adapted from Reuters reporting)