Overview

• An EU Chamber survey of 503 executives found only 29% optimistic about growth and just 12% upbeat on profitability over the next two years, both all-time lows
• Seventy-three percent of respondents said operating in China has become more difficult over the past year, marking a fourth consecutive annual increase
• Sixty-three percent reported missing business opportunities due to market access restrictions and regulatory barriers, prompting widespread cost cuts
• More than a quarter of companies have increased onshoring to meet localization requirements, while only 10% are building alternative overseas supply chains
• Jens Eskelund said China’s low-cost supply chain appeal persists but uncertainty prevails and firms would expand spending if access conditions improve