About 80 percent of Chinese companies operating in the European Union plan to expand their investment there, although many complain about policy uncertainty, according to a report published Tuesday by the China Chamber of Commerce in the EU (CCCEU) and the China Economic News Service.
The results are in stark contrast to similar reports published by the European Chamber of Commerce in China (EUCCC) – despite companies from both sides complaining about barriers such as policy restrictions and playing fields. Only 38 percent of European companies that responded to the survey had plans to expand their operations in China, according to the latest EUCCC confidence report, which was published in May last year.
The gap showed how the European Union market remained profitable for Chinese companies, analysts said.
“Chinese companies are complaining, yes, but they love the European market, this is very clear,” said Alicia Garcia-Herrero, chief Asia-Pacific economist at French investment bank Natixis.
More than 60 percent of companies surveyed said they expect their revenues in the EU to continue growing, including 32 percent who expected growth of more than 10 percent, according to the report, which surveyed nearly 100 leading Chinese companies in emerging industries including batteries, electric vehicles, artificial intelligence and renewable energy.
European influence was reinforced by the growing difficulty for Chinese companies to raise money at home as the domestic market became a brutal race to the bottom, as well as barriers to access to the American market, Garcia-Herrero said. The report said that the US policy changes had only a limited impact on the broader strategy of Chinese companies towards Europe.
The European market was so attractive that companies were looking to invest in the EU even if they were not threatened by EU tariffs on products made in China, he said.
