European Chamber Calls for Action to Restore Business Confidence Go back »

2024-05-10 | All chapters

Beijing, 10^th May 2024 – The European Union Chamber of Commerce in China, in partnership with Roland Berger, today released its European Business in China Business Confidence Survey 2024 (BCS). The annual survey shows that despite the re-opening of China’s borders in early 2023, business confidence in the market continued on a downward trend.

Instead of benefitting from the strong economic rebound that many had expected, European firms operating in China found themselves facing more uncertainty. China’s structural issues—including sluggish demand, growing overcapacity and the continued challenges in the real estate sector—along with market access and regulatory barriers, continued to negatively impact European companies.

A positive finding in the survey is the notable increase in the proportion of respondents reporting market opening in their industry (45%, +9pp y-o-y). However, 68% reported that business became more difficult, the highest percentage on record. In addition:

• 55% of respondents ranked China’s economic slowdown as a top-3 business challenge, a 19-percentage point increase year-on-year (y-o-y);
• 58% missed business opportunities as a result of market access or regulatory barriers;
• 44% are pessimistic about profitability over the next two years, the highest level on record; and the proportion of respondents positive about their growth prospects dropped a staggering 23 percentage points y-o-y.

The strategies companies are employing to adapt to the business environment have the potential to set China into a negative cycle that would add to the country’s economic woes:

• 52% of respondents plan to cut costs, with 26% of them doing so by reducing headcount.
• 13% have already shifted, or taken the decision to shift, existing investments out of China (although 21% have indicated they will be onshoring more of their supply chain).
• 42% are considering expanding their operations in China in 2024 – the lowest level on record.

“There are worrying signs that some European companies are either siloing operations or scaling down their ambitions in China as the challenges they face start to outweigh the benefits of being here,” said Jens Eskelund, president of the European Union Chamber of Commerce in China. “While the Chinese Government is frequently signalling its intent to improve the business environment, we now need to see concrete action to restore investor confidence.”

“European companies are confronted by growing uncertainties in China, in large part due to economic volatility and less predictable policy direction,” said Denis Depoux, global managing director of Roland Berger. “While volatility can be managed, the lack of predictability may reduce the appeal of the Chinese market.”

Download the report here.

 中国欧盟商会呼吁付诸行动，重塑商业信心

  北京，2024年5月10日——中国欧盟商会联合罗兰贝格今日发布《商业信心调查2024》。本年度调查结果表明，尽管2023年年初中国重迎开放，但市场商业信心呈持续下降趋势。

  与预期不同的是，中国经济并未实现强势反弹、推动欧洲在华企业的发展，相反，企业正面临着更多不确定性。中国国内市场需求疲软、产能过剩情况加剧和持续的房地产困境等结构性问题，以及市场准入和监管壁垒等障碍，继续阻碍欧洲在华企业的发展。

  调查显示的一项积极结果是，认为其所处行业市场得到放开的受访企业比例显著增加（占45%，同比增长9个百分点）。然而，68%的受访企业表示营商难度加大，为历史最高比例。此外：

• 55%受访企业将中国经济放缓位列为三大商业挑战之一，同比增长19个百分点。
• 58%受访企业因市场准入或监管壁垒而错失商机。
• 44%受访企业对未来两年盈利状况持悲观态度，达到历史最高水平；对业务前景持积极态度的受访企业较去年骤减，降幅达23个百分点。

  企业为适应商业环境而采取应对策略，或将使中国经济陷入负面循环，从而加剧经济困境。

• 52%受访企业计划削减成本，其中26%企业将通过裁员来实现。
• 13%受访企业已经或已决定将现有在华资产进行转移（尽管21%的受访企业表示将加大供应链在岸外包）。
• 42%受访企业考虑在2024年扩大在华业务，为历史最低水平。

  中国欧盟商会主席彦辞表示：“诸多迹象表明，由于中国市场呈现的挑战逐步大于机遇，导致部分欧洲企业正在将中国业务孤立化，或缩小其在华业务的规模，该现象令人担忧。中国政府屡次表明有决心改善营商环境，但投资者只有看到实际行动才能恢复商业信心。”

  罗兰贝格全球管理委员会联席总裁戴璞先生表示：“欧洲企业在华运营面临的不确定性与日俱增，这在很大程度上是由经济不稳定和政策方向缺乏可预测性所造成的。前者尚且可控，但缺乏可预测性或将降低中国市场的投资吸引力。”

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