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The range of the range near Nanji -Raud Street in Shanghai, China, April 1, 2025.
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Beijing – European business -optimism in China has reached the slightest recording – worse than during the pandemic – from slow growth and geopolitical worries.
A record 73% of the respondents in the EU Chamber of Commerce and Industrial House said in an annual poll that business management in the Asian country became more complicated last year, which marks a new maximum in the fourth year.
This is just one of several record lows in the moods found in an annual poll, which has been published since 2004. The latest study published on Wednesday covered 503 respondents in January and February.
“Companies really feel squeezing, being pessimistic, but again in China, very convincing supply networks that require a constant presence (in) the Chinese market,” the Chamber President told reporters this week.
However, this does not mean that business confidence is close to return.
“We have not seen the points yet,” Eskelund said. “Much is uncertain.”
The survey reflected how problems for foreign enterprises in China have increased largely since the closure of the pandemic in 2022. While local brands have become more competitive, the total consumer demand remains insufficient amid the fall of real estate and uncertainty in the labor market.
Cosmetic companies were particularly injured. The industry has accused of falling local demand and reported a reduction in revenue by 45% in 2024 a year before – only the second decade over the last decade, the House said.
On the other hand, aviation and aerospace space were rare industries that say that business management in China has become easier.
Slow growth reduces China’s attractiveness relative to other markets.
In the next two years, only 12% of respondents were optimistic about profitability, and the least, the country as the main place for future investments was the least. Another record minimum of 38% of respondents said it is planned to expand in China over the next year.
Although Beijing has announced efforts to improve the conditions of foreign investment, there are many problems.
The 63% record stated that last year they missed business opportunities from market restrictions and regulatory barriers. Medical products that replied that European companies have undergone discrimination from public procurement practice that prefer home players.
The scale of pessimism repeated the annual poll of US companies in China released in late January in which Write down the share of the American business accelerated plans for resettlement or search.
Meanwhile, 53% of respondents said they would increase their investment in China if additional measures to improve the local market are taken.
Competition chain supply
China still remains dominant in the global supply chain for the ability to offer quality details at the lowest price – the only way when businesses can remain competitive, Eskelund said, citing talking over the last three weeks with hundreds of companies in the House in China.
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Asked about the supply chain diversification, more than a quarter of the respondents said they are increasing in China as a way to meet localization requirements and better achieve the domestic market.
A much smaller share of 10% of respondents said they create foreign alternative supply networks while maintaining its existing network in China. The poll also showed that almost half of the respondents said their Chinese providers also move operations to other markets.
Chinese and EU leaders set Spend a summit in Beijing in July Because both are trying to strengthen bilateral ties against the background of higher tariffs in the US. ES-DRUGS ABOUT THE SUPPOSED PROGRAGE IN THE SURCCURE Regional.
