European Firms Lose Confidence Operating in China: Supply Lines

European companies operating in China are the most pessimistic about growth prospects since 2011, a new survey shows.

Some 29% of respondents were downbeat on the outlook for their sector over the next two years, according to an annual report published on Wednesday by the European Union Chamber of Commerce in China.

Other key findings:

• 49% of businesses expressed pessimism about their profitability
• A record-low 38% of respondents plan to expand their businesses in China over the coming year
• A rising number of respondents indicated they shifted current or future operations to other countries, often in Europe or Southeast Asia