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2007-11-22 | All chapters

European Chamber Business Confidence Survey Paints A Rosy Picture
Lin Guan, China Daily online, 22nd November 2007

Most EU companies are making money in China and will continue their expansion here, according to the European Chamber Business Confidence Survey 2007 released today.

Some 76 percent of the respondents are either making a profit or at least breaking even, while 82 percent of the unprofitable companies expect to make a profit within 3 years.

The European Chamber Business Confidence Survey 2007 questioned 221 companies in a variety of sectors. Not only large enterprises took part in the online survey, but also small and medium-sized ones. In comparison to last year’s survey, there is a stronger focus both on establishing R&D facilities, and also on expanding investment.

Some 69 percent of the respondents plan to increase their investments in China within the next two years. This is combined with a willingness to invest in R&D centres in China, and when asked if they would invest elsewhere in Asia, only 16 percent said they would.

Joerg Wuttke, president of the European Chamber, commented, "EU companies are doing well in an increasingly competitive business environment."

The survey reveals that 73 percent of the respondents are generally optimistic about future growth opportunities in China. Their optimism is mostly based on the continuing strength of China’s economic development and the resulting growth in domestic consumption.

Charles-Edouard Bouee, managing director of Roland Berger Strategy Consultants in China, pointed out: "The optimism on business performance is not surprising. To a great extent, it reflects the experience of our European clients operating in China, who are confident to remain profitable in the coming years. "

There is also a trend for companies to shift their sales and service centres, from 1st tier to 2nd and 3rd tier cities.

Despite all the optimism, many of surveyed companies are concerned about a series of issues such as shortages of qualified staff and environmental problems.

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