Confidence in China
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A new survey by Roland Berger Strategy Consultants and the EU Chamber of Commerce in China reveals that a lack of transparency and government regulations still hamper EU investments in China.
The European Union Chamber of Commerce in China and Roland Berger Strategy Consultants revealed the findings of the annual European Chamber Business Confidence Survey on 22 November. The survey presents the opinions of more than 200 European companies operating in China.
The survey shows that EU companies are doing well in an increasingly competitive business environment. Almost 70% plan to increase their investments in the country within the next two years and 76% of respondents are making profit or at least breaking even. In comparison to last year's survey, however, companies are placing a stronger focus on establishing R&D facilities on the expansion of their investment. In addition, the survey revealed, that more than 80 percent of the respondents indicated they were primarily in China to access or serve the Chinese market
"European businesses do this in view of a regulatory environment that has not improved. They could serve the Chinese customers even better if the lack of transparency and inconsistencies in government regulations improved, ” said Jörg Wuttke, President of the European Chamber.
Charles-Edouard Bouee, Managing Director of Roland Berger Strategy Consultants emphasized the wide-spread perception that European businesses are generally optimistic about their performance in China. "Although many surveyed companies are not as profitable as they expect to be, they are very confident about their ability to generate profit in the next 3 years. This reflects to a great extent the experience of our European clients. Their optimism is mostly based on the continuing strength of China’s economic development and the resulting growth in domestic consumption."
However, many of the surveyed companies are concerned about a series of issues such as shortages of qualified staff, environmental problems, and insufficient protection of Intellectual Property Rights.They expect the Chinese government to take more effective action to address these problems. Many are also skeptical whether the Chinese government will in fact live up to its WTO commitments. They feel that beyond superficial changes, not much is being done in the way of full compliance.
The European Union Chamber of Commerce in China and Roland Berger Strategy Consultants revealed the findings of the annual European Chamber Business Confidence Survey on 22 November. The survey presents the opinions of more than 200 European companies operating in China.
The survey shows that EU companies are doing well in an increasingly competitive business environment. Almost 70% plan to increase their investments in the country within the next two years and 76% of respondents are making profit or at least breaking even. In comparison to last year's survey, however, companies are placing a stronger focus on establishing R&D facilities on the expansion of their investment. In addition, the survey revealed, that more than 80 percent of the respondents indicated they were primarily in China to access or serve the Chinese market
"European businesses do this in view of a regulatory environment that has not improved. They could serve the Chinese customers even better if the lack of transparency and inconsistencies in government regulations improved, ” said Jörg Wuttke, President of the European Chamber.
Charles-Edouard Bouee, Managing Director of Roland Berger Strategy Consultants emphasized the wide-spread perception that European businesses are generally optimistic about their performance in China. "Although many surveyed companies are not as profitable as they expect to be, they are very confident about their ability to generate profit in the next 3 years. This reflects to a great extent the experience of our European clients. Their optimism is mostly based on the continuing strength of China’s economic development and the resulting growth in domestic consumption."
However, many of the surveyed companies are concerned about a series of issues such as shortages of qualified staff, environmental problems, and insufficient protection of Intellectual Property Rights.They expect the Chinese government to take more effective action to address these problems. Many are also skeptical whether the Chinese government will in fact live up to its WTO commitments. They feel that beyond superficial changes, not much is being done in the way of full compliance.
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Michael O'Sullivan, the Secretary General of the European Chamber, said of the survey, “It provides an important insight into the concerns and views of European businesses operating in China, and this year it bears out many of the concerns which we raised in our annual Position Paper in September. We think it will be of interest to governments in both China and Europe”.
The European Chamber Business Confidence Survey 2007 will be presented to government and regulatory agencies in China, to the European Commission and EU Member State Governments, and to a wide range of business organizations and companies in China and Europe.
The European Chamber Business Confidence Survey 2007 will be presented to government and regulatory agencies in China, to the European Commission and EU Member State Governments, and to a wide range of business organizations and companies in China and Europe.
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