EU businesses see growing confidence in Chinese market

The Business Confidence Survey 2024 reveals a notable uptick in market opening for EU companies in China, with a 9% increase from the previous year. Optimism persists despite challenges, signaling a promising outlook for business expansion in the region.

The Business Confidence Survey 2024, conducted by The European Union Chamber of Commerce in China, offers crucial insights into the evolving dynamics of EU companies operating within the Chinese market. With 529 members participating in the survey from mid-January 2024, the findings shed light on key trends and sentiments shaping business confidence in China.

One of the standout findings from the survey is the positive trajectory in market opening experienced by EU companies in China. In 2023, 45% of surveyed EU firms reported market opening, marking a significant increase from the previous year. Among these, 19% indicated significant business openings, reflecting a notable 9% uptick compared to the preceding period.

The increase in market opening and business opportunities signifies a favourable regulatory environment and a growing receptiveness towards foreign investment in China. EU companies appear to be benefiting from policies aimed at facilitating foreign participation in various sectors of the economy, thereby enhancing their ability to expand operations and capitalize on market potential.

Furthermore, the survey findings suggest that EU companies are increasingly optimistic about the long-term prospects of their businesses in China. Despite geopolitical tensions and global economic uncertainties, a significant proportion of EU firms remain bullish on their growth prospects within the Chinese market. This optimism is likely fueled by China’s continued economic resilience, robust consumer demand, and ongoing efforts to enhance business-friendly policies.

However, it is essential to acknowledge the challenges that EU companies continue to face in China. Despite improvements in market access, issues such as regulatory compliance, intellectual property protection, and uneven enforcement of laws remain areas of concern for many businesses. Addressing these challenges will be critical in sustaining the positive momentum observed in the survey and fostering a conducive environment for long-term investment and growth.