The 21st edition of the annual survey shows that despite the re-opening of China’s borders in early 2023, business confidence in the market continued on a downward trend.

Instead of benefitting from the strong economic rebound that many had expected, European firms operating in China found themselves facing more uncertainty. China’s structural issues—including sluggish demand, growing overcapacity and the continued challenges in the real estate sector—along with market access and regulatory barriers, continued to negatively impact European companies.

The strategies companies are employing to adapt to the business environment have the potential to set China into a negative cycle that would add to the country’s economic woes.

Read the press release in full.