The challenges reflect broader ones faced by a Chinese economy hobbled by a prolonged real estate crisis that has hurt consumer spending. Beijing also faces growing pushback from Europe and the United States over surging exports.
“The image has declined significantly across numerous crucial indicators,” stated the European Union Chamber of Commerce in China at the beginning of its Business Confidence Survey 2025.
The factors boosting Chinese exports are also dampening the business prospects within China’s domestic market. Many Chinese firms, lured by governmental incentives, have heavily invested in sectors like electric vehicles, resulting in production capabilities that vastly exceed current demand.
Tolong support kita ya,
Cukup klik ini aja: https://indonesiacrowd.com/support-bonus/
Excess capacity has led to intense price battles that have eroded profit margins, accompanied by corporations simultaneously expanding their presence in international markets.
Across Europe, this situation has sparked concerns that increasing imports from China might weaken local industries and the workforce employed within them. Last year, the European Union imposed tariffs on Chinese electric vehicles, claiming that China was providing unfair subsidies for their production.
“I believe there is a distinct understanding that the advantages of the bilateral trade and investment relationship are not being shared fairly,” said Jens Eskelund, president of the EU Chamber in China, when speaking with journalists earlier this week.
He praised China’s initiatives aimed at increasing consumer expenditure; however, he emphasized that the administration should also implement measures to guarantee that supply expansion does not surpass demand growth.
Eskelund stated that the survey findings indicate an increase in profit pressures during the last year, with declining business confidence showing no signs of stabilizing. Approximately 500 member firms participated in this poll from late January through early February.
“It’s extremely challenging for everybody at present in this atmosphere where profit margins are shrinking,” he stated.
