European companies are becoming increasingly concerned about China’s new economic trajectory. The head of the European Union Chamber of Commerce in China said they are seeing “worrying signs” that the country’s economic focus is increasingly inward. So Jörg Wootke believes that there are “high doubts about the future growth of the country”.
The five-year plan adopted by the Communist Party in March states that the country wants to become less dependent on the rest of the world and eventually achieve a high degree of self-reliance. The risky interest group sees that European companies could play an increasingly smaller role in the Chinese economy, especially in high-tech sectors. European companies also view recent steps by Beijing to get companies to comply with stricter regulations with suspicion.
Wootki says there are no short-term problems. Last year, many major European companies achieved record sales and profits in China, which recovered quickly from the Corona crisis. The prospects are still good for the coming years, according to the organization that represents 1,700 European companies in China.
An annual survey by the American Chamber of Commerce in China shows that American companies are also concerned about Beijing’s new path toward large companies, but they are more optimistic than the past three years about the business climate in China. It is also a corporate interest group.
Under US President Joe Biden, trade relations with China have returned to normal after his predecessor Donald Trump’s trade war. In addition, US companies saw an increase in their sales and profits in China last year. However, companies are questioning China’s strict Corona policy in which entire neighborhoods or cities are sometimes quarantined due to a single infection.
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