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Chinese companies' confidence in the EU has fallen to a six-year low

Chinese entrepreneurs cite rising labor costs and geopolitical tensions as the main challenges

Снимка: ЕРА/БГНЕС

Confidence among Chinese companies operating in the European Union has fallen to a six-year low amid political risks and rising costs, Xinhua reported, citing a report by the Chinese Chamber of Commerce in the EU (CCCEU) and consulting firm Roland Berger.

According to the agency, representatives of Chinese companies rate the business environment in the EU at 61 out of 100. This is lower than in 2019, when the value was up to 73.

Chinese entrepreneurs cite rising labor costs, geopolitical tensions and the EU's changing policy towards China as the main challenges. More than 40% of respondents said they had faced “differential treatment“ because of their Chinese origin, including longer approval processes and limited access to subsidies.

Furthermore, nearly 90% of companies said that the European “risk mitigation” has negatively affected their activities due to tightened control over investments and increased barriers to entry.

Nevertheless, Chinese business has demonstrated resilience: 53% of the companies surveyed report revenue growth in 2024. In 2025, 62% expect revenue growth, and half plan to expand their investments in the EU, the agency writes.

The survey was conducted over four months and included representatives of 205 Chinese companies.