Deutsche Welle Chinese Edition recently reported that, according to the “2025 Business Confidence Survey Report” just released by the European Union Chamber of Commerce in China, the sentiment of European companies in China has fallen to a new low. EU companies in China are generally affected by various uncertainties and lack of optimism about their development prospects. The chairman of the Chamber expressed his belief that the past assumption of easily making substantial profits is gone forever.
Only 29 percent of the surveyed companies said they were optimistic about the growth prospects in China in the next two years, down three percentage points year-over-year. And 73 percent of the surveyed companies said that doing business in China has become more difficult in the past year. This proportion has increased by 5 percent from last year, reaching a record high. Around 38 percent surveyed plan to expand their business in China, a record low compared to 42 percent last year. And about 52 percent said they plan to cut costs in the coming year, another record high.
The annual survey report states that “China’s business environment has deteriorated on many key indicators.” The imposition of tariffs by the United States and recent developments in the European Union are reasons for business anxiety. The survey results show that downward pressure on corporate profits has further intensified over the past year. The Chamber also highlighted growing concerns among businesses about the unpredictability and lack of transparency in Beijing’s policies. Increased political interference in China further increased operational difficulties.
The survey was conducted before the U.S. increased tariffs in April. Business confidence is likely even worse now than when the survey was conducted.
Source: DW Chinese, May 28, 2025
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