European companies are more pessimistic about their growth prospects in China than ever before, according to the European Union Chamber of Commerce in Beijing.
The business advocacy group published its annual business sentiment survey in Beijing on Friday, showing 23% of the companies surveyed were pessimistic about their growth prospects over the next two years. In the previous year's survey, only 10% had expressed pessimism.
In contrast, the number of companies that were positive about their growth prospects fell from 55% in the previous year to 32%, a record low.
According to the survey, the past year was characterized by growing uncertainty for European companies in China. The country's re-opening after the pandemic initially triggered a sense of optimism.
However, structural problems such as weak domestic demand, high local government debt and ongoing challenges in the property sector quickly clouded the outlook again.
Business confidence has also been further weakened by contradictory messages from the Chinese government.