China urgently needs to address economic uncertainty, head of EU business lobby group says

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China’s economy grew at a frail pace in the second quarter, prompting top leaders to promise further policy support and analysts to downgrade their growth forecasts for the year

The head of an influential European business lobby in China said Beijing needs to send a clear message on how it plans to revive its economy and provide clarity on a national security crackdown that is unnerving the foreign business community.

“The next few months, we believe, would be actually quite important in terms of rebuilding confidence in the future trajectory of China,” he added during an interview at the group’s Beijing headquarters on Monday. At the same time, leaders have vowed more support for embattled private entrepreneurs and called for more overseas investment, but confidence remains low.

Eskelund, who is also Chief Representative for Danish shipping giant Maersk in Greater China and Northeast Asia, said: “I think China is evolving. Not everything will continue to go upwards at a steep incline forever. So it is natural that ... a very steep growth rate will moderate at some point in time.”

While the group has not seen a mass exodus of European firms among its members, he said weak demand and a volatile geopolitical environment have led firms to reassess supply chains. This has come as European leaders have also emphasized derisking their economic ties with China.

 

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