China continues to be a huge market for many companies, but market access barriers, tepid domestic consumption, and a more politicized business environment mean companies are looking at “defensive” investments as opposed to new investments, according to the European Union Chamber of Commerce in China.
An annual report highlighting the position of European companies in China published Wednesday said the sentiment among companies and shareholders is that the returns on China investments no longer outweigh the risks of operating in the world’s second largest economy.
