Latest news with #Eskelund
Qatar Tribune
3 days ago
- Business
- Qatar Tribune
European companies face 'difficult' China market
Agencies European companies are cutting costs and scaling back investment plans in China as its economy slows and fierce competition drives down prices, according to an annual survey released Wednesday. Their challenges reflect broader ones faced by a Chinese economy hobbled by a prolonged real estate crisis that has hurt consumer spending. Beijing also faces growing pushback from Europe and the United States over surging exports. 'The picture has deteriorated across many key metrics,' the European Union Chamber of Commerce in China said in the introduction to its Business Confidence Survey 2025. The same forces that are driving up Chinese exports are depressing the business outlook in the Chinese market. Chinese companies, often enticed by government subsidies, have invested so much in targeted industries such as electric vehicles that factory capacity far outpaces overcapacity has resulted in fierce price wars that cut into profits and a parallel push by companies into overseas Europe, that has created fears that growing imports from China could undermine its own factories and the workers they employ. The EU slapped tariffs on Chinese EVs last year, saying China had unfairly subsidized electric vehicle production. 'I think there's a clear perception that the benefits of the bilateral trade and investment relationship are not being distributed in an equitable manner,' Jens Eskelund, the president of the EU Chamber in China, told reporters earlier this week. He applauded efforts by China to boost consumer spending but said the government must also take steps to ensure that supply growth doesn't outpace that in demand. The survey results show that the downward pressure on profits increased over the past year and that a fall in business confidence has yet to bottom out, Eskelund said. About 500 member companies responded to the survey between mid-January to mid-February. 'It is just very difficult for everyone right now in an environment of declining margins,' he said.
5 days ago
- Business
European companies cut costs, scale back investments in China as its economy slows
BEIJING -- European companies are cutting costs and scaling back investment plans in China as its economy slows and fierce competition drives down prices, according to an annual survey released Wednesday. Their challenges reflect broader ones faced by a Chinese economy hobbled by a prolonged real estate crisis that has hurt consumer spending. Beijing also faces growing pushback from Europe and the United States over surging exports. 'The picture has deteriorated across many key metrics,' the European Union Chamber of Commerce in China said in the introduction to its Business Confidence Survey 2025. The same forces that are driving up Chinese exports are depressing the business outlook in the Chinese market. Chinese companies, often enticed by government subsidies, have invested so much in targeted industries such as electric vehicles that factory capacity far outpaces demand. The overcapacity has resulted in fierce price wars that cut into profits and a parallel push by companies into overseas markets. In Europe, that has created fears that growing imports from China could undermine its own factories and the workers they employ. The EU slapped tariffs on Chinese EVs last year, saying China had unfairly subsidized electric vehicle production. 'I think there's a clear perception that the benefits of the bilateral trade and investment relationship are not being distributed in an equitable manner,' Jens Eskelund, the president of the EU Chamber in China, told reporters earlier this week. He applauded efforts by China to boost consumer spending but said the government must also take steps to ensure that supply growth doesn't outpace that in demand. The survey results show that the downward pressure on profits increased over the past year and that a fall in business confidence has yet to bottom out, Eskelund said. About 500 member companies responded to the survey between mid-January to mid-February. 'It is just very difficult for everyone right now in an environment of declining margins,' he said.
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Business Standard
5 days ago
- Business
- Business Standard
European businesses report record-low optimism in China: Survey
Confidence among European businesses operating in China has fallen to a record low, according to the European Union Chamber of Commerce's annual survey released on Wednesday. The survey, based on responses from 503 member companies conducted in January and February, highlights growing concerns even before US-China trade tensions escalated further in April. Only 29 per cent of respondents said they were confident about growth prospects in China over the next two years, the lowest level since 2013. An equal 29 per cent expressed outright pessimism, the highest in the survey's history. Optimism regarding profitability dropped three percentage points from last year to just 12 per cent, another historic low. In contrast, 49 per cent expressed pessimism—setting a new record. EU firms urge China to enact promised reforms The EU Chamber of Commerce urged the Chinese government to fully implement newly announced reforms aimed at improving conditions for foreign businesses. Jens Eskelund, president of the Chamber, noted that concerns over China's domestic economy and persistent producer-price deflation were weighing heavily on both European and Chinese firms. 'Uncertainty resulting from escalating trade and geopolitical tensions, concerns about China's domestic economy, and persistent producer-price deflation weigh on the minds of both European and Chinese companies,' Eskelund said. Barriers to market access persist The survey also found that market access and regulatory hurdles remain ongoing challenges. About one-third of respondents said they do not expect significant progress in this area—unchanged from last year's sentiment. Beijing has promised to maintain an open market for foreign businesses. In February, it approved a new policy framework to attract overseas investment, removing restrictions on foreign manufacturing investments and expanding industries open to foreign firms. China's slowdown cited as top risk Of those surveyed, 71 per cent listed China's economic slowdown as one of the top three risks to their operations in the country. This was followed by US-China tensions and regional geopolitical conflicts. 'A new, more fragmented globalisation is taking shape, while China's economy is stabilising with slower growth and greater competition—signalling transformation rather than decline,' said Denis Depoux, global managing director of Roland Berger, which co-conducted the survey. He emphasised that companies must adapt by localising operations and forming stronger partnerships with domestic firms. Rising EU-China trade friction The report also noted intensifying trade tensions between the EU and China, with both sides launching multiple trade investigations in recent months. Eskelund highlighted the impact of China's April export controls on critical minerals, which have disrupted production across hundreds of European operations. 'A number of companies in Europe will be running out of some of these minerals and production this week,' Eskelund said.
Yahoo
5 days ago
- Business
- Yahoo
European companies cut costs and scale back investments in China
The challenges reflect broader ones faced by a Chinese economy hobbled by a prolonged real estate crisis that has hurt consumer spending. Beijing also faces growing pushback from Europe and the United States over surging exports. 'The picture has deteriorated across many key metrics,' the European Union Chamber of Commerce in China said in the introduction to its Business Confidence Survey 2025. The same forces that are driving up Chinese exports are depressing the business outlook in the Chinese market. Chinese companies, often enticed by government subsidies, have invested so much in targeted industries such as electric vehicles that factory capacity far outpaces demand. The overcapacity has resulted in fierce price wars that cut into profits and a parallel push by companies into overseas markets. Related China cuts key lending rates to record lows to counter the impact of US tariffs In Europe, that has created fears that growing imports from China could undermine its own factories and the workers they employ. The EU slapped tariffs on Chinese EVs last year, saying China had unfairly subsidised electric vehicle production. 'I think there's a clear perception that the benefits of the bilateral trade and investment relationship are not being distributed in an equitable manner,' Jens Eskelund, the president of the EU Chamber in China, told reporters earlier this week. He applauded efforts by China to boost consumer spending but said the government must also take steps to ensure that supply growth doesn't outpace that in demand. Related BYD stock plunges following deep price cuts as EV sales surpass Tesla in Europe The survey results show that the downward pressure on profits increased over the past year and that a fall in business confidence has yet to bottom out, Eskelund said. About 500 member companies responded to the survey between mid-January to mid-February. 'It is just very difficult for everyone right now in an environment of declining margins,' he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Business Standard
5 days ago
- Business
- Business Standard
As European economy slows, companies scale back investments in China
European companies are cutting costs and scaling back investment plans in China as its economy slows and fierce competition drives down prices, according to an annual survey released Wednesday. Their challenges reflect broader ones faced by a Chinese economy hobbled by a prolonged real estate crisis that has hurt consumer spending. Beijing also faces growing pushback from Europe and the United States over surging exports. "The picture has deteriorated across many key metrics," the European Union Chamber of Commerce in China said in the introduction to its Business Confidence Survey 2025. The same forces that are driving up Chinese exports are depressing the business outlook in the Chinese market. Chinese companies, often enticed by government subsidies, have invested so much in targeted industries such as electric vehicles that factory capacity far outpaces demand. The overcapacity has resulted in fierce price wars that cut into profits and a parallel push by companies into overseas markets. In Europe, that has created fears that growing imports from China could undermine its own factories and the workers they employ. The EU slapped tariffs on Chinese EVs last year, saying China had unfairly subsidised electric vehicle production. "I think there's a clear perception that the benefits of the bilateral trade and investment relationship are not being distributed in an equitable manner," Jens Eskelund, the president of the EU Chamber in China, told reporters earlier this week. He applauded efforts by China to boost consumer spending but said the government must also take steps to ensure that supply growth doesn't outpace that in demand. The survey results show that the downward pressure on profits increased over the past year and that a fall in business confidence has yet to bottom out, Eskelund said. About 500 member companies responded to the survey between mid-January to mid-February. "It is just very difficult for everyone right now in an environment of declining margins," he said.
