Difficult times for European companies: China business is increasingly risky!

European companies are faced with an increasingly unclear business situation in China. According to Jens Eskelund, President of the European Chamber of Commerce in China, many companies areolating their China business in order not to be disadvantaged by strict Chinese guidelines. This was reported by the Black Forest Bote .

The Chamber of Commerce expresses concern about the upcoming inauguration of Donald Trump, who has threatened Chinese products with other tariffs. The United States is already raising high tariffs to some products from China, whereupon China reacts to important raw materials with export controls. These developments could continue to complicate the situation for European companies, especially in the automotive, IT, telecommunications and medicine.

risks outweigh the advantages

The Tagesschau reports that the confidence of European companies in the Chinese market is at a historical low. The main reason for this is that China's economy does not recover as hoped for Corona pandemic. In particular, weak domestic consumption affects the sales opportunities of the companies.

The Chamber of Commerce warns that the risks of investments in China outweigh the advantages. Legal uncertainties and vague laws on national security make the investment decisions more difficult. Hurdles such as unclear definitions on state secrets and an inadequate implementation of announced economic reforms contribute to uncertainty.

Nevertheless, European companies remain actively on the Chinese market. German companies continue to invest in China and rely on innovations as well as research and development to remain present despite the difficulties and to meet the challenges.