China is losing its luster as a top country to invest in as firms seek to avoid geopolitical risks and turn to Southeast Asia and Europe, according to a survey by the European Union Chamber of Commerce in China.
Only 13% of firms surveyed earlier this year saw the country as a top destination for investments, the lowest level since record began in 2010 and down from 27% in 2021. Companies were more optimistic about growth in China then, but now they were shifting investments increasingly to mitigate the impact of ¡°decoupling¡± between China and other countries as well as to find opportunities elsewhere, according to the survey released Friday.
The gloomy responses highlight China¡¯s fading appeal to foreign firms despite Chinese President Xi Jinping¡¯s pledge in November to take more ¡°heart-warming¡± measures to ease access to the world¡¯s second-largest economy. The worsening sentiment is especially alarming as it reflects a view on the country with the pandemic largely out of the picture, suggesting the challenges are long-term.
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