The latest survey report released by the European Round Table for Industry (ERT) shows that the majority of chief executives of European multinational companies believe that the relationship between Europe and China will deteriorate further in the next three years.
According to the survey report released on May 29 by the European Round Table for Industry on its official website ert.eu, the foreseeable future will continue to present challenges in the Europe-China relationship. The report indicates that in recent years, the relationship between Europe and China has become extremely complex. Factors such as China’s support for Russia, human rights violations, deteriorating business environment for foreign companies in China, geopolitical tensions, have put pressure on the relations between the European Union and mainland China.
With geopolitical tensions and growing trade disputes between Europe and China, concerns about the worsening of the Europe-China relationship are on the rise. Chief executives of European multinational companies have also expressed similar concerns.
When asked about their expectations for the future diplomatic relations between Europe and China over the next three years, 54% of chief executives anticipate a deterioration, while 39% estimate no change, and only 7% believe there will be an improvement in relations between the two sides.
These European corporate executives believe that reducing the EU’s dependence on the Chinese market, particularly in key minerals and technology through a “de-risking” strategy, is a top priority area for managing friction between Europe and China. Other areas of friction include trade disputes and overcapacity in Chinese production.
The survey also found that overall, compared to six months ago, chief executives are more optimistic about the business environment due to improving economic conditions. However, much of this optimism stems from business prospects outside of Europe.
The chief executives believe that the new leadership of the European Union following the European Parliament elections from June 6 to 9 will have the greatest positive impact on the European economic outlook through streamlining regulations and improving the EU’s single market.
The EU is China’s largest export market for goods, while China is the third largest market for EU goods. In recent months, trade disputes between the EU and China have escalated, with a trade war looming.
Currently, the EU has initiated anti-dumping or anti-subsidy investigations on 13 Chinese import products, including electric cars, seamless steel tubes, engineered wood flooring, and lanolin. In response, Beijing has accused Europe of dumping premium brandy and other products in China. There are reports that China is considering imposing tariffs on large engine cars imported from the EU and the US.
The latest report from the European Round Table for Industry is based on a survey conducted among the members of the European Round Table Conference from April 3 to April 25, with a response rate of 98%.
The European Round Table for Industry (ERT) brings together 57 CEOs and chairpersons of leading multinational companies based in Europe, covering a wide range of industrial and technological sectors. The total revenue of ERT member companies exceeds 2 trillion euros, providing direct employment for approximately 5 million people worldwide.