European CEOs more optimistic about business prospects in India than in China
34 per cent expect business conditions in China to improve by end of decade, while 63 per cent have positive expectations for India
European CEOs remain cautious about China’s long-term business prospects, according to a new report, with more now ranking their relationship with India a higher priority amid challenging global macroeconomic conditions.
Asked about their expectations for business conditions in China more than three years down the road – in terms of regulatory stability and simplicity, openness and investment attractiveness – 34 per cent of respondents to a survey were positive, 34 per cent were neutral and 23 per cent were negative, The Conference Board and the European Round Table for Industry said in a joint report published on Friday.
It was based on a survey of the heads of Europe’s 60 largest non-financial companies in April.
The numbers suggested more favourable views about China in the long term, beyond three years, than in the medium term, since a report published last year showed only 8 per cent of respondents were planning to invest more in China, said Alejandro Fiorito, an economist at The Conference Board.
The CEOs’ relative optimism about outside markets was underpinned by short-term worries about the global economic situation and pessimism about business conditions in Europe.