MNI BRIEF: China’s European Firms Facing Record Difficulties

European firms operating in China are facing record levels of difficulty doing business in the country, said Jens Eskelund, president at the European Union Chamber of Commerce in China on Wednesday, citing increasing economic, regulatory and political concerns among members.

Introducing the chamber's latest sentiment survey, Eskelund said an economic slowdown compounded by overcapacity had made it difficult to operate.

Concerns over China’s economic slowdown topped the list for 71% of respondents, up one percentage point from last year's survey, followed by U.S.-China tensions at 47%.

China’s hopes of reviving the Comprehensive Agreement on Investment (CAI) with the EU are fading, as Brussels focuses on derisking supply chains and is more likely to pursue targeted cooperation in areas like green industry and artificial intelligence, policy advisors recently told MNI. (See MNI: China, EU CAI Hopes Fade, Focus Shifts)