Foreign companies are shifting investment out of China as confidence wanes, business group says

By Aya Jootar  Published On June 22, 2023

BEIJING — Foreign companies are shifting investments and their Asian headquarters out of China as confidence plunges following the expansion of an anti-spying law and other challenges, a business group said Wednesday.

The report by the European Union Chamber of Commerce in China adds is one of many signs of growing pessimism despite the ruling Communist Party’s efforts to revive interest in the world’s No. 2 economy following the end of anti-virus controls.

Companies are uneasy about security controls, government protection of their Chinese rivals and a lack of action on reform promises, according to the European Chamber. They also are being squeezed by slowing Chinese economic growth and rising costs.

Business confidence in China is “pretty much the lowest we have on record,” the European Chamber president, Jens Eskelund, told reporters ahead of the report’s release.

“There’s no expectation that the regulatory environment is really going to improve over the next five years,” Eskelund said.

Source: Market Watch


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