The COVID-19 epidemic has exacerbated already worrisome trends to doing business in China amid slowing revenue growth, regulatory obstacles and the clout of the state-owned sector, a European business group said on Wednesday.
Only half of European companies surveyed said that their mainland China revenues last year increased by 5% or more, the lowest proportion in a decade, according to a survey of members of the European Union Chamber of Commerce in China conducted in February that involved 626 respondents in all.
“The full extent of the negative impact from COVID-19 on revenue growth remains unclear, but the trend is undeniably bleak,” said the report. Only “incremental” improvements to China’s regulatory environment were seen in 2019, according to the report, and 44% of surveyed members expected obstacles to increase over the next five years.
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