Latest news with #EuropeanUnionChamberofCommerce
Qatar Tribune
2 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.
3 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
3 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.
Time of India
3 days ago
- Business
- Time of India
China may relax rare earth export curbs for some chip companies
China may relax curbs on exports of rare earths for Chinese and European semiconductor firms and other companies in their supply chain, state media said on Wednesday. In April, China put seven rare earths and related products on an export control list, forcing all exporters to apply for licences, regardless of the nationality of overseas customers. While a few licences have since been granted to exporters of rare earth magnets , used in the semiconductor, auto and defence industries, the complex licensing process can take months, and is already causing confusion at customs. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. On Wednesday, the official China Daily said China could relax the controls for the supply chains of Chinese and European semiconductor companies, citing a single source. The rare earth controls were discussed at a meeting between Chinese and European semiconductor firms hosted by China's commerce ministry on Tuesday, the paper said, where Chinese officials explained the application process. Live Events "The meeting provided European Chamber members the opportunity to express in person the urgent need to accelerate approval processes, to ensure the stability of their supply chains," said Jens Esklund, president of the European Union Chamber of Commerce in China. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories "This is imperative, as many European production lines will come to a halt very soon due to the shortage of crucial inputs," he added in a statement to Reuters.
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Nikkei Asia
15-05-2025
- Business
- Nikkei Asia
Tariffs against US hit 44% of EU companies in China: survey
DALIAN, China -- Nearly half of European companies doing business in China import products subject to Beijing's retaliatory tariffs on U.S. goods, according to a recent survey by the European Union Chamber of Commerce in China. A total of 44% of respondents said they have been affected by the duties. Higher prices had already been observed by 23%, while 17% expect to see increases going forward.
