While France attracts foreign investors, China sees European companies moving away. The prospects for European investments in the Middle Kingdom are at their lowest.
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The European Chamber of Commerce in China deplores this in its latest survey. We haven’t seen China’s trade outlook this low in 20 years. Coincidentally, this study was published at the time of the Choose France summit, Monday May 13, and just a few days after the report from the EY firm showing that France is for the fifth consecutive year the most attractive country in Europe for investors. foreigners.
The reasons for disinterest
Foreign companies feel less welcome in China than before. A short sentence dropped by the Danish Jens Eskelund, who chairs the consular body, says a lot about the situation: “l“The challenges facing European companies are beginning to outweigh the benefits of their presence in China.”. Translation: the investments, the money, that we must devote in particular to the energy transition in Europe are today more important than investing in Asia. It’s a question of priority.
According to this report from the European Chamber of Commerce in China, only 13% of companies from Europe today consider the country as a preferred investment destination. They were almost 25%, a quarter of EU companies, in 2022, when Covid restrictions were lifted. Even with the lifting of restrictions linked to the pandemic, China has not regained its level of attractiveness.
A lack of transparency
The pandemic and the real estate crisis have highlighted the limits of the previously uncontested development model of economic power. Companies are moving investments to other markets perceived as more reliable and transparent. Enough to achieve Beijing’s pride while the Asian giant’s economic growth is experiencing serious difficulties.
