Confidence among European companies operating in China has dropped to the lowest level in over a decade. This comes from the latest survey by the European Union Chamber of Commerce. The data was collected in January and February 2025, just before US-China trade tensions increased again in April.
Out of 503 European businesses that took part in the survey, only 29 percent said they were confident about China’s economic growth in the next two years. That is the lowest result since 2013. Another 29 percent said they were not confident at all, which is the highest level of pessimism ever recorded in this annual study.
Profit expectations are also at a new low. Only 12 percent of companies believe they will see better profits this year. That is three percentage points lower than last year. At the same time, 49 percent expect lower profits, which is the worst result in the survey’s history.
The EU Chamber of Commerce is urging the Chinese government to act fast. European firms want China to follow through on recent reform promises. These reforms aim to create better conditions for foreign companies doing business in the country.
One of the main problems raised in the survey is that businesses still face big barriers when entering the Chinese market. Rules remain unclear and often change without warning. About one-third of the companies said they do not expect any progress in solving these issues this year. That is the same as last year, showing that the situation has not improved.
Many companies also say that government policies still favor Chinese firms. Some firms have trouble getting licenses or face long delays. Others say they cannot compete fairly with local companies.
While the survey ended in February, new trade tensions have added more pressure. In April, the United States introduced new tariffs on Chinese goods. China responded with its own measures. These moves have made it even harder for European companies to plan for the future.
China’s economy is also slowing down. The government set a growth target of 5 percent for 2025, but many experts think this may not be reached. Domestic spending is low. The housing market remains weak. Many local factories are struggling with falling prices. These are all signs of economic trouble.
For European firms, this adds more risk to doing business in China. They are caught between local challenges and rising global trade problems. This makes it hard to invest, grow, or even stay in the market.
Despite this, many European companies still want to be in China. The market is large and important. But they want clearer rules and more fair treatment. They also want to see real action from China, not just promises.
The Chamber has sent a list of suggestions to the Chinese government. These include lowering market barriers, giving fair access to foreign firms, and making rules more open and stable.
The results of this year’s survey should be taken seriously. If China wants to keep foreign investors, it must rebuild trust. Time is running out, and businesses are starting to look elsewhere.
