CEOs ‘cautiously optimistic’ about China’s economy amid ‘new competitive reality’
- Confidence in Chinese business climate inches up as consumption slump, geopolitics and local competition test resilience, survey says
CEO confidence in China inched up marginally to 56, from 54 six months ago, on a scale from 0 to 100, with a reading below 50 points reflecting more negative than positive responses.
The survey, conducted by The Conference Board, was carried out between April 9 and 24, with a response rate of 72 per cent of 43 members of the non-profit business research group invited to participate.
“The combined effect of market, economic, policy and geopolitical factors are leading to the emergence of a new competitive reality that is putting business resilience to the test like never before, and which is challenging old notions about the China opportunity that were generated over the previous decades of high, rapid, and inclusive growth,” said Alfredo Montufar-Helu, head of the China Centre for Economics and Business at The Conference Board.
According to the survey, 35 per cent of CEOs said that current conditions are better than six months ago – up from 31 per cent in the second half of last year, but the figure is still significantly lower than 88 per cent in the first half of 2023.
Regarding long-term potential, 51 per cent of CEOs said that Chinese demand would be at least above average globally five years from now, and 26 per cent said that it would be on par with other major markets.
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