Chinese companies say EU business conditions have worsened over six years

Chinese companies in the European Union say business conditions in the bloc have worsened for the sixth straight year, as rising labor costs and political challenges pressure their operations, according to a survey.

A Chinese Chamber of Commerce survey of the EU of 200 Chinese companies and organizations said the bloc’s performance in research, human resources, digitalization and market access was a drag.

In a survey conducted by consultancy Roland Berger, Chinese companies and organizations gave the EU business environment an overall score of 61 points, down from 73 points in 2019 and one point lower than in 2024.

EU-China relations have been strained by the EU’s “risk reduction” strategy aimed at reducing its dependence on China, especially for critical minerals, with stricter screening of investment and tariffs, especially on Chinese-made electric vehicles since October last year.

The CCCEU said that the recent easing of “extreme negative sentiment” had not resulted in fundamental improvements.

“Core issues, such as market entry barriers and restrictions on research collaboration, remain unresolved and continue to hinder Chinese companies’ operations in the EU,” the CCCEU report said.

Some 81% of respondents see increasing uncertainty and 67% strong anti-China sentiment impacting their business in the EU.

Specific challenges include exclusion of market access and government procurement opportunities, protracted approval processes, limited access to subsidies, and limited channels for government engagement.

However, 62% of Chinese companies expect an increase in their revenue in the European Union this year and just under half expect an increase in profits.

Half of all respondents said they planned to increase investment in the EU, and only 11% expected a reduction in investment.
Source: Reuters