Chinese firms in Europe concerned by calls for decoupling and growing support for protectionism

A survey of businesses operating in the EU highlighted concerns about the ‘wall’ put up around the bloc’s hi-tech and telecoms sector

Companies also worried about the political atmosphere and the increase in negative views about China across the continent

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The survey found businesses were concerned about the European political environment. Photo: EPA-EFE

Published: 9:00pm, 2 Oct 2022

Chinese enterprises operating in the European Union have expressed concern about increasing calls for decoupling and the threat of trade protectionism, with a new report indicating that business sentiment has dropped to a three-year low.

A complicated political environment, the fast roll-out of unilateral economic and trade instruments, as well as the impact of negative public opinion are the main factors dragging down sentiment, according to the report by the China Chamber of Commerce to the EU (CCCEU) and global consultancy Roland Berger.

The report, which was released on Friday, surveyed about 150 Chinese enterprises in the EU this summer and found that 53 per cent of respondents believed the business environment had deteriorated in the 12-month period covering the second half of 2021 and the first half of this year – the third year in a row sentiment had dropped.

It also said the deteriorating macroeconomy had created a less favourable business environment, while 38 per cent of respondents found that a hostile political environment had hit their business operations.

In total, 80 per cent of the surveyed enterprises said geopolitical dynamics, the Covid-19 pandemic and supply chain disruptions were taking an increasing toll on both the global economy and enterprises operating in the EU.

“The wall put up around the hi-tech and telecom sectors in Europe is making matters difficult for Chinese enterprises operating in the EU,” the report said.