Pessimism on the investment outlook in China is weighing heavier on European companies amid economic uncertainties and geopolitical tensions, a leadin

In China, business sentiment plunges to ‘all-time low’, EU Chamber of Commerce finds | South China Morning Post

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2024-05-10 06:30:05

Pessimism on the investment outlook in China is weighing heavier on European companies amid economic uncertainties and geopolitical tensions, a leading foreign business association has warned as it renewed calls for Beijing to take concrete steps to restore business confidence.

European firms have become more hesitant to broaden their investments in China and continue to eye possibilities in other regions such as Southeast Asia and India, the European Union Chamber of Commerce in China said on Friday.

Among respondents to its annual Business Confidence Survey, 15 per cent – a record-low proportion of companies in the poll – said China was still their top investment destination, while only 13 per cent – another historic low – still viewed it as the top destination for the future.

Despite three-quarters of respondents saying they planned to reinvest some of their 2023 profits in China, more than a third said they would reinvest less than their historical average.