Business Confidence Survey 2010 shows uncertainty on the regulartory environement Go back »

2010-06-29 | All chapters

Beijing, 29th June, 2010. The European Union Chamber of Commerce in China today launches its seventh annual European Chamber Business Confidence Survey, which is published in partnership with Roland Berger Strategy Consultants. The European Union Chamber of Commerce Business Confidence Survey 2010 surveyed over 500 European companies based in China between March and April of 2010. The results – the most comprehensive and wide-ranging set of data yet gathered for this annual publication – show a European business community that remains optimistic about surging economic growth, but concerned about uncertainty in the business environment and ongoing regulatory unpredictability.

The 2010 Survey findings show that European businesses in China are generally optimistic about growth in their business sector – they have seen the Chinese market recover strongly and anticipate that this impressive performance will create opportunities for their own industries. As a result, European companies report that China has become an even more important element of their global business strategies.

However, this expected optimism about growth does not automatically translate into confidence in China as a sustainable and predictable investment environment in the long term. Instead, what the survey results present is a more complex picture in which optimism in the overall economic climate has been dampened dramatically by concerns about regulatory interference and unpredictability in the market. The vast majority of respondents believe that regulations affecting business conditions for foreign-invested companies will not become fairer in the near future.

Jacques de Boisséson, President of the European Chamber, commented, “Our members are confident about market growth in China and are backing this up with strategies based on investment and market-share expansion. However, they are concerned about an unpredictable regulatory environment that constrains their ability to compete. The discretionary enforcement of laws and regulations, opaque and burdensome registration processes as well as concerns regarding the protection of intellectual property rights continue to be top concerns for European business in China. These persisting regulatory challenges temper the attractiveness of China as a long-term investment destination. Our member companies’ continued commitment to China as an investment location is not unconditional and would be further bolstered by a clearer and more predictable business environment.”

Charles-Edouard Bouée, Asia President of Roland Berger Strategy Consultants, said, “The results of the survey clearly show that European companies are confident about China's growth perspective and that the Chinese market offers many opportunities. But growth is only one side of the coin. In the long run it is profitability that determines the success of a company. Currently, only about one-third of the respondents are optimistic about their profitability prospects. One factor impacting this sentiment is rising competition. As the Chinese market matures, so do domestic competitors, who are perceived to be a risk for future business by 58% of respondents. European companies need to "raise their game" in China and continue to differentiate their products and services in this complex market. To that end, we hope that the report helps businesses gain insights that support their strategic planning and tactical decision-making.”

Following today’s launch, the European Chamber will present the findings from the European Chamber Business Confidence Survey 2010 to government and regulatory agencies in China, to the European Commission and EU Member State Governments, and to a wide range of business organisations and companies in China and Europe.

Key findings of the European Chamber Business Confidence Survey 2010

Ø 78% of respondents reported optimism regarding growth in their sector over the next two years; while only 34% reported optimism about profitability in their sector for the same period.

Ø Some 49% of respondents reported that China has become a more important market for them, while only 4% say China has become less important to their overall strategy; 47% say there has been no noticeable change. Ø 30% of members highlight China as the top investment destination for them today, with another 34% identifying China as a Top 3 destination.

Ø 36% of respondents perceive the government policies affecting the business environment toward FIEs as having become less fair over the past 2 years. Additionally, 39% expect government policies affecting FIEs in China to become less fair toward FIES.

For further information, please contact:

Effie Wu Press Officer

European Union Chamber of Commerce in China

Phone: +86 (0)10 6462 2066 – 22

Mobile: +86 134 8888 1345

E-mail: ewu@euccc.com.cn

Website: www.europeanchamber.com.cn  

Susanne Hoffmann,

International PR Manager Roland Berger Strategy Consultants

Phone: +86 (0)21 5298 6677-825;

Mobile:+86 1378 8993 272

E-mail: Susanne_Hoffmann@cn.rolandberger.com

Website: www.rolandberger.com.cn

About the European Union Chamber of Commerce in China

The European Union Chamber of Commerce in China was founded by 51 European member companies on 19th October 2000. The European Chamber was established to give European businesses a common voice across different business sectors, nationalities and regions of China. Around ten years after its foundation, the European Chamber now has more than 1400 members and is active in eight cities: Beijing, Chengdu, Nanjing, Pearl River Delta (Guangzhou and Shenzhen), Shanghai, Shenyang and Tianjin. The Chamber is recognized by the European Commission and the Chinese authorities as the authoritative and independent voice of European business in China.

The Chamber is built around 34 Working Groups and Forums, bringing together senior executives who engage in strategic discussions ranging from market access to the evolution of the business environment in China. Through regular dialogues with both the Chinese and European government, the Chamber conveys the operational business concerns of European companies and makes suggestions for improvements to policy-makers.

About Roland Berger Strategy Consultants Greater China

The Chinese market is a key pillar of Roland Berger Strategy Consultants' international expansion. Since our entry into the China market in 1984, the consultancy has grown rapidly: The four Chinese offices (Shanghai, Beijing, Hong Kong and Taipei) now have over 200 consultants dedicated to working extensively with both leading Chinese and international companies. As the only consulting firm of European origin among the global Top 5, Roland Berger Strategy Consultants has built its expertise on its extensive experience working with clients on complex business cases for 40 years. Outstanding strategic analysis and in-depth knowledge on implementation measures are the strengths of the company's consulting approach. Roland Berger consultants combine their analytical and strategic know-how within a diverse company setting to help clients in China successfully master their unique challenges.

For more information please contact