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30 May 2014
Growing number of EU firms in China believe 'golden age' over
FXStreet (Bali) - Half of EU businesses in China think that the 'golden age' in China is now over, according to information gathered by the European Union Chamber of Commerce in China.
PRW news reports: "The leading European business group in China said in a 29 May report that its companies are scaling back investment plans as China’s economy slows and challenges including rising labour costs, regulatory issues and market access become more entrenched."
PRW quotes Jörg Wuttke, president of the Beijing-based European Union Chamber of Commerce in China, who said: “The Chinese economic slowdown and tougher business conditions are starting to bite and financial performances are getting much tighter. Half of European companies already believe that the ‘golden age’ for multinational companies in China is over.”
Further comments by Wuttke include: “Most European companies feel that domestic Chinese companies continue to receive favourable treatment. Two analogous issues – the unpredictable legislative environment and the discretionary enforcement of regulations – are identified as the two most significant regulatory challenges.”
PRW adds: "The chamber released its annual business confidence survey, based on input from 550 EU chamber companies. The report said the huge size of China’s market will still offer substantial opportunities and keep it as a strategic location for most of its member companies, but the trade association pointed to a “new sober reality” among executives."
PRW news reports: "The leading European business group in China said in a 29 May report that its companies are scaling back investment plans as China’s economy slows and challenges including rising labour costs, regulatory issues and market access become more entrenched."
PRW quotes Jörg Wuttke, president of the Beijing-based European Union Chamber of Commerce in China, who said: “The Chinese economic slowdown and tougher business conditions are starting to bite and financial performances are getting much tighter. Half of European companies already believe that the ‘golden age’ for multinational companies in China is over.”
Further comments by Wuttke include: “Most European companies feel that domestic Chinese companies continue to receive favourable treatment. Two analogous issues – the unpredictable legislative environment and the discretionary enforcement of regulations – are identified as the two most significant regulatory challenges.”
PRW adds: "The chamber released its annual business confidence survey, based on input from 550 EU chamber companies. The report said the huge size of China’s market will still offer substantial opportunities and keep it as a strategic location for most of its member companies, but the trade association pointed to a “new sober reality” among executives."