Well-known Chinese news site Sina recently reported that, not long ago, the European Union Chamber of Commerce in China released its annual report on business confidence. The report showed that the EU companies in China are reconsidering their strategy in the Chinese market. The report pointed out that the continuing top challenge remains the on-going slow-down of the Chinese economy. More and more EU companies are laying off people based on their pessimistic expectations. According to the report, around a quarter of the companies surveyed expressed deep concern about their profitability in the near future. Among the industrial companies, only 13 percent of them expected growth and 28 percent expected profit over the next two years. The top three categories of companies, including machinery, legal, and transportation/logistics do not expect to expand their businesses this year. Around 39 percent of the EU companies in China are planning on cost-cutting activities. The Chamber sent their survey to 1,474 EU companies currently doing business in China.
Source: Sina, June 11, 2015