UpdateEconomic headwinds, unfriendly treatment and a volatile yuan test European firms in China: report
The EU chamber criticises Beijing’s controls on the internet as ‘self-defeating’
European firms on the mainland have a pessimistic outlook on the nation’s economy and are concerned about an unfriendly business environment, the European Union Chamber of Commerce in China said on Tuesday.
Concerns over the slowdown in growth and the cloudy economic outlook were the largest challenges for European companies, the lobby group said in its latest Business Confidence Survey.
They are worried about what they see as an uneven playing field against domestic rivals – particularly as Beijing tightens controls on the internet and national security and seeks to boost home-grown technology – as well as the slow progress of reforms.
European business group protests against cybersecurity rules that ‘penalise’ foreign firms in China
Such complaints have cast a shadow over bilateral ties and are expected to be raised during the ninth visit to China by German Chancellor Angela Merkel that begins on Sunday, and at the EU-China Summit in July.
Some 55 per cent of firms polled thought the “golden age” for multinational companies in China had come to an end, up from 46 per cent when the chamber raised the question in 2014.
Businesses in “virtually all industries” predicted the slowdown would have a substantial impact on them. “It is therefore expected that the worst is yet to come,” the report said.