Survey Highlights Growing Challenges
BRUSSELS, Nov 12 (Reuters) – Chinese companies operating in the European Union say business conditions have worsened for the sixth consecutive year. Rising labor costs and political challenges continue to pressure their operations, according to a survey published Wednesday.
The survey, conducted for the China Chamber of Commerce to the EU (CCCEU), polled 200 Chinese companies and organizations. Respondents highlighted obstacles in research, talent acquisition, digitalization, and market access.
Declining Scores for EU Business Environment
Consultants Roland Berger carried out the survey. Chinese firms gave the EU business environment an overall score of 61 points. This represents a decline from 73 points in 2019 and is slightly lower than in 2024.
EU-China relations have been strained by the bloc’s “de-risking” strategy. The EU aims to reduce dependence on China for critical minerals and now applies stricter screening of investments. Tariffs on Chinese-built electric vehicles, implemented in October last year, also affect operations.
Persistent Barriers
The CCCEU noted that a recent easing of “extreme negative sentiment” has not produced fundamental improvements.
“Core issues, such as barriers to market entry and restrictions on research collaboration, remain unresolved and continue to hinder Chinese companies’ operations in the EU,” the report said.
Some 81% of respondents reported that rising uncertainty impacts their business. Meanwhile, 67% said strong anti-China sentiment is a concern. Specific challenges include:
- Exclusion from market access and government procurement opportunities
- Prolonged approval processes
- Limited access to subsidies
- Restricted channels for government engagement
Revenue and Investment Outlook
Despite these challenges, 62% of Chinese companies forecast revenue growth in the EU this year. Slightly less than half expect a rise in profits. Half of all respondents plan to increase investment in the EU, while only 11% anticipate reducing their spending.
