Latest news with #inChina
Yahoo
2 days ago
- Business
- Yahoo
EU Poised to Curb China's Access to Medical Device Procurement
(Bloomberg) -- The European Union is set to curb Chinese medical device manufacturers' access to public procurement contracts in the bloc, according to a person familiar with the matter. Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry Where the Wild Children's Museums Are The Economic Benefits of Paying Workers to Move Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania NYC Congestion Toll Brings In $216 Million in First Four Months EU countries are due to vote on the proposed measure as early as Monday, said the person, who spoke on condition of anonymity to discuss private deliberations. The move, if backed by member states, would be the first action taken by the EU based on its International Procurement Instrument, a 2022 law that's meant to promote reciprocity in access to public procurement markets. Implementation of the restrictions could open a new front with China, just as the EU seeks to strike a balance in its relationship with Beijing while navigating US President Donald Trump's tariff war. A spokesperson for the European Commission, the EU's executive arm, didn't immediately reply to a request for comment. The EU launched an investigation into China's procurement of medical devices last April, with the probe finding in January that Beijing discriminated against foreign firms. Consultations failed to find alternative solutions, Bloomberg previously reported. Beijing's focus on local and state-oriented procurement in medical technologies has increased in recent years, as authorities across the country included strict domestic product requirements for many categories of device. The shift turned a €1.3 billion ($1.5 billion) trade deficit in these goods for China in 2019 into a €5.2 billion surplus just one year later, according to data cited in an EU report published last April. The focus of the investigation wasn't to reverse that trend but to enable fair competition. The EU has long argued that Beijing has been pushing market-distorting measures and practices to implement its 'Made in China' policy and its target of achieving 85% domestic market share for Chinese companies producing 'core medical device components' by 2025. The target is 70% for higher-end devices. The IPI allows the commission to impose various restrictions on firms seeking to participate in procurements, ranging from score adjustments in tenders to an outright ban from procurement contracts. --With assistance from Ewa Krukowska. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Will Small Business Owners Knock Down Trump's Mighty Tariffs? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. 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
Epoch Times
3 days ago
- Business
- Epoch Times
Confidence of EU Companies in China Drops to Historic Low: Survey
The confidence of European companies operating in China has dropped to a record low, according to an annual survey, with respondents citing China's economic downturn and rising geopolitical tensions. In the European Union Chamber of Commerce in China's 2025 Business Confidence Survey published on May 28, a record 73 percent of the 503 respondents said that it's more difficult to do business in China. The survey of 503 chamber members was conducted in January and February, which was before the tariff war escalated in April.
Yahoo
28-05-2025
- 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
Time of India
28-05-2025
- Business
- Time of India
European firms cut costs, curb investments in China amid slowdown, rising competition
European firms are cutting costs and pulling back on investment plans in China, according to an annual survey released Wednesday, as the country's economic slowdown and intensifying local competition continue to squeeze profit margins and dampen business sentiment. "The picture has deteriorated across many key metrics," states the European Union Chamber of Commerce in China in their Business Confidence Survey 2025 introduction. The difficulties mirror broader challenges within the Chinese economy, which is affected by an extended property sector crisis impacting consumer expenditure. Additionally, China faces increasing resistance from Europe and the United States regarding export surge. The factors driving Chinese exports upward are simultaneously dampening business prospects within China. Local enterprises, often supported by government incentives, have invested extensively in sectors like electric vehicles, resulting in production capacity exceeding market demand. This excess capacity has triggered intense price competition, reducing profits and encouraging companies to expand into international markets. In Europe, concerns are rising that increased Chinese imports could affect domestic manufacturing and employment. The EU implemented duties on Chinese electric vehicles last year, citing unfair subsidisation of EV 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," stated Jens Eskelund, EU Chamber in China president, during a recent press briefing. While acknowledging China's efforts to enhance consumer spending, Eskelund emphasised the need for government action to balance supply growth with demand. The survey findings indicate increased pressure on profits over the past year, with business confidence continuing to decline, he continued. Approximately 500 member organisations participated in the survey conducted between mid-January to mid-February. "It is just very difficult for everyone right now in an environment of declining margins," Eskelund added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
CNBC
28-05-2025
- Business
- CNBC
European businesses have never been this gloomy about China
BEIJING — European business optimism about China has hit its lowest on record – worse than during the pandemic — due to slower growth and geopolitical worries. A record 73% of respondents in the EU Chamber of Commerce in China's annual survey said doing business in the Asian country has become more difficult in the past year, marking a new high for a fourth-straight year. That's just one of the several record lows in sentiment found in the annual survey, which has been published since 2004. The latest study released Wednesday, covered 503 respondents in January and February. "Companies are really feeling the squeeze, being pessimistic, but again finding very compelling supply chains in China that necessitate a continued presence [in] the Chinese market," Jens Eskelund, president of the chamber, told reporters this week. Still, that doesn't mean business confidence is close to returning. "We haven't seen an inflection point yet," Eskelund said. "A lot of it boils down to uncertainty." The survey reflected how challenges for foreign businesses in China have largely increased since the pandemic lockdown in 2022 disrupted supply chains. While local brands have become more competitive, overall consumer demand has remained lackluster amid the real estate slump and uncertainty in the job market. Cosmetics companies were particularly hit. The industry blamed a drop in local demand and reported a 45% drop in revenue in 2024 from a year before — only the second decline in the past decade, according to the chamber's report. On the other hand, aviation and aerospace were the rare industries saying that doing business in China became easier. Slower growth is diminishing China's attractiveness relative to other markets. A record low of only 12% of respondents were optimistic about profitability in China in the coming two years, while the fewest on record ranked the country as a top destination for future investments. Another record low of 38% of respondents said they planned to expand in China over the coming year. And while Beijing has announced efforts to improve conditions for foreign investment, many challenges remain. A record 63% of respondents said they missed business opportunities in China last year due to market access restrictions and regulatory barriers. Medical device businesses who responded said European companies experienced discrimination due to public procurement practices favoring domestic players. The scale of pessimism echoed an annual survey of U.S. companies in China released in late January that showed a record share of American businesses were accelerating plans to relocate manufacturing or sourcing. Meanwhile, 53% of respondents said they would increase their investments in China if more action was taken to improve local market access. China remains dominant in the global supply chain for its ability to offer quality parts at the lowest price — the only way that businesses are able to stay competitive, Eskelund said, citing conversations over the last three weeks with hundreds of companies across the chamber's six chapters in China. When asked about supply chain diversification, more than a quarter of respondents said they were increasing onshoring to China as a way to meet localization requirements and better reach the domestic market. A far smaller share at 10% of respondents said they were establishing overseas alternative supply chains while keeping their existing network in China. The survey also found that nearly half of respondents said their Chinese suppliers were also moving operations to other markets. Chinese and EU leaders are set to hold a summit in Beijing in July as both try to strengthen bilateral ties amid higher U.S. tariffs. The EU is China's second-largest trading partner on a regional basis.
