Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported on the latest survey results from the British Chamber of Commerce in China. The business confidence survey of around 300 British companies in China indicated that 60 percent of surveyed companies believe that doing business in China is more difficult this year than last year. The top three reasons that made it more difficult for them are economic factors, geopolitical factors and regulatory factors.
The report pointed out that due to the slow recovery of China’s economy after Covid-19 and the influence of geopolitical issues, British companies in China are in a state of hesitation, and many companies have postponed their investment decisions. About 55 percent of the surveyed companies said they will reduce or maintain investment levels in China operations next year. Around 42 percent of the respondents believe that the uncertainty of other countries’ trade policies towards China in the past year had a negative impact on their business operations.
The report pointed out that 2024 will be a critical year for the development of relations between China and the West, and that China’s relationship with the West is likely to become an important factor driving changes and decisions for companies that are “stagnant.”
Source: Lianhe Zaobao, December 12, 2023