EU Firms’ Appetite For China Investment Sinks to Record Low

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(Bloomberg) -- China is losing its luster as a top country to invest in as firms seek to avoid geopolitical risks and turn to Southeast Asia and Europe...

-- China is losing its luster as a top country to invest in as firms seek to avoid geopolitical risks and turn to Southeast Asia and Europe, according to a survey by the European Union Chamber of Commerce in China.Apple Apologizes for iPad Pro Ad, Scraps Plan to Air It on TV

Over two thirds of respondents said doing business in China became more difficult in 2023, the highest proportion since the question was first asked in 2014. The construction sector reported particularly challenging conditions, saying the playing field is tilted more in favor of domestic competitors as building activity slowed amid China’s real estate crisis.

China has rejected the claims saying its industry is competitive due to innovation, not government subsidies.Ambiguous rules and an unpredictable legal environment remain top regulatory obstacles, according to the survey. Financial services firms saw data-related laws as a top concern, though the survey was conducted in January and February before China walked back new rules governing cross-border data flows.

As China’s appeal as an investment destination fades for European firms, the Association of Southeast Asian Nations has emerged as the main beneficiary of the redirected money, followed by Europe, India and North America, according to the survey.

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EU Firms’ Appetite For China Investment Sinks to Record LowChina is losing its luster as a top country to invest in as firms seek to avoid geopolitical risks and turn to Southeast Asia and Europe, according to a survey by the European Union Chamber of Commerce in China.
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