Foreign companies operating in China say tensions with Washington over technology, trade and other issues and uncertainty over Chinese policies are damaging the business environment and causing some to reassess their plans for investing in the giant market.
However, after the turbulent past three years, many have reevaluated their basic assumptions about the Chinese market,” Jens Eskelund, the EU Chamber’s president said, in a letter that accompanied the report.
Overall, the survey showed sentiment worsened from last year, when companies were embroiled in disruptions from “zero-COVID” policies that caused parts of entire cities, transport networks and travel to be shut down, sometimes for weeks at a time.
“What I can tell you is that China’s economy is resilient, promising and dynamic, and the fundamentals of long-term development have not changed,” said the spokesperson, Mao Ning.
Companies face a growing threat from “nimble, innovative local businesses and state-owned enterprises, which have enjoyed stronger support in recent years and whose consolidation has made them increasingly competitive with large multinational corporations,” the survey said.
Companies that are limiting their commitment to the China market included those selling technology hardware, software and services — an area hit hard by trade sanctions imposed in the name of national security, mostly by Washington.
The original article contains 869 words, the summary contains 207 words. Saved 76%. I’m a bot and I’m open source!