Sentiment among Chinese European companies has reached new lows, according to a new survey published by the Chinese EU Chamber of Commerce on Wednesday.
Only 29% of the companies surveyed said they were optimistic about China's growth prospects over the next two years.
Chamber of Commerce Chairman Jens Eskelund said in Beijing that the current level of unpredictability is hurting business confidence and making it difficult for companies to remain optimistic. He sees our tariffs and the latest developments in the EU as the root of uneasiness.
Compared with last year, sentiment fell by another three percentage points. In 2024, nearly three-quarters of survey companies said it became more difficult to do business in China.
From simple profits to tighter profits
Eskelund said the predictability and reliability of the market have made China attract people, and companies make a lot of money there.
But the days of high profits and days of filling bank accounts are hardly ending now, he said, adding that companies have to work hard for their own money.
Of the 503 companies surveyed, most expressed concerns about China's overall economic outlook. Demand remains slow, partly due to the extended crisis in the real estate sector, which has caused many consumers to tighten spending as home values fall.
Meanwhile, domestic Chinese companies are becoming stronger competitors, with huge price wars packing profits between multiple departments.
The Chamber also highlighted the unpredictable and non-transparent regulations in Beijing. In some industries, businesses say the rise in political intervention makes operations more difficult.
