Foreign firms consider China pull-out

The survey conducted by the European Union Chamber of Commerce in China showed that about 40 percent of European firms said they will reassess their operations amid the unfriendly business environment and the government’s protection of local firms.Only 47 percent of those polled intended to expand current China operations, down 9 percentage points from last year. It was 86 percent in 2013. But more than half of European companies are willing to increase investments in China if market access requirements are eased.

Continuous tightened internet control and access restrictions added burdens on their performance, leading to low productivity and deferred plans, 58 percent of those surveyed said, 17 percentage points up from last year. Regarding the enforcement of environmental regulations in China, 57 percent consider it to be strict. 

For three consecutive years, more than 50 percent of European companies found themselves tending to receive unfavorable treatment versus Chinese companies.

Affected by excess capacity and the slowdown in the economy, many companies considered prospects to be uncertain. About 41 percent said they may cut their spending or cut jobs in the country.

Seventy percent of the businesses surveyed felt they were less popular in China, rising 7 percentage points from last year.