Almost 70% of European companies in China achieved a solid financial performance, and about 60% showed interest in increasing investment in China. The results, released by news agency Xinhua (New China), were obtained by the Business Confidence Survey 2018, an annual study conducted by the EU Chamber of Commerce and the consulting firm Roland Berger.
In 2017, despite more competition, rising labor costs and the increased cost of living, 66% of surveyed European companies reported an increase in annual revenues compared to the previous year, especially in the medical equipment, pharmaceutical and automotive industry, says the study.
59% of European companies also consider China as one of the top three destinations for current and future investments.
The report also reveals that China has made significant progress in areas of major concern for European companies, such as the protection of intellectual property rights (IPR), the equal application of environmental laws and regulations, and support for innovation. The opinions of European companies on compliance with IPR laws and regulations have grown more positive. This is due to two factors: IPR protection is currently a priority for the Chinese Government, and local companies need technological innovation in order to grow and boost their profitability, as pointed out by the Xinhua article.
Finally, the report states that 57% of the surveyed companies have said they will boost their investment in the country if China further opens the market.