Today’s News

British companies operating in China remain gloomy about their business prospects, with many citing worsening economic conditions, despite Beijing’s recent economic stimulus efforts. According to the British Chamber of Commerce in China’s latest survey, released on December 3, 58% of firms reported that doing business in China has become more challenging over the past year. Of those, 86% attributed these difficulties to economic factors.

“British businesses continue to face significant headwinds, from China’s economic slowdown to regulatory hurdles,” the chamber noted. “Revenue expectations are down, and businesses’ optimism for 2025 is low despite the announcement of stimulus measures.” 

The survey, which gathered responses from the Chamber’s 400 members between September and November, reveals that this is the fifth consecutive year of declining business sentiment. Only 41% of companies expect conditions to improve in 2025. 

Even with China’s efforts to boost its USD 19 trillion economy through stimulus measures, the results highlight ongoing struggles for foreign firms. The country’s economic recovery has been slow after the lifting of strict COVID-19 restrictions in late 2022, and analysts are warning of potential stagnation similar to Japan’s “lost decade” in the 1990s. 

High-profile companies like AstraZeneca, BP, Jaguar Land Rover, Standard Chartered, and Rolls-Royce are among the Chamber’s members, all of which are grappling with the difficult environment. The Chamber also noted that while U.K.-China bilateral ties have improved—following visits from British Foreign Secretary David Lammy and Prime Minister Keir Starmer—concerns over China’s state subsidies and trade tensions with the U.S. and EU remain. 

“Shaping a long-term plan for China will be difficult as the U.S. embarks on another Trump presidency and the EU adopts an increasingly protectionist stance against China,” the Chamber concluded. 

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