China’s market is becoming less attractive for European companies due to unfulfilled reforms and increasing problems. For some companies, the risks of investing in China are already beginning to outweigh the returns, according to the annual position paper of the EU Chamber of Commerce in Beijing. This trend will intensify if companies’ main concerns are not addressed. “Concrete action is therefore needed to turn the tide,” demanded the lobby group with more than 1,700 members.
“The predictability, reliability and efficiency that made the Chinese market so attractive for foreign companies are continuing to decline, and the business environment is even more politicized,” the paper said. What is new, according to Chamber President Jens Eskelund, is that the economic situation in China is continuing to deteriorate.
Making money in China is becoming more problematic, explained Eskelund. The Chamber does not see European companies withdrawing. Many companies also need to be in China to remain competitive. However, some companies are considering shifting some of their production to other locations. Others are waiting to see how China develops before investing in new business in the People’s Republic. This is the group to whom Beijing must prove that China is still an attractive location, emphasized Eskelund.
© dpa-infocom, dpa:240911-930-228986/1
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