European companies cool on plans to invest in China, report shows

A growing number of European companies have given up hope that things will get better, the European Chamber of Commerce in China has warned as it offers more than 1,000 proposals on how Beijing could improve the environment for European businesses.

In the past, big multinationals could leverage their global operations to spread the cost of a downturn in business in China. But in recent years, many firms have adopted an “in China for China” strategy so that their operations there effectively become Chinese companies with foreign shareholders.

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European stocks gain for third straight sessionThe Stoxx Europe 600 Index was up by 1 per cent although some analysts cautioned investors against complacency.
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