From CNBC: 2024-05-09 20:30:54

A robot is producing auto parts in China on May 7, 2024. European companies struggle in China due to slowing growth and overcapacity pressures, facing delays in getting paid and enforcing contracts. Only 30% report higher profit margins in China than globally – the lowest in eight years..geomaritter

China’s growth has slowed amid geopolitical tensions, impacting the economy and profitability of foreign companies. Many face challenges in transferring dividends back to headquarters. The current downturn in Chinese growth is cyclical, but uncertainty looms about the duration and severity of it.geomaritter

China’s emphasis on manufacturing and domestic demand has led to global concerns over overproduction and declining profit margins. Many industries report overcapacity and pricing drops. China is making efforts to attract foreign investment, opening some markets and implementing visa-free policies for EU countries.geomaritter

Despite China’s efforts to attract foreign investment, skepticism remains high among foreign companies. Business conditions are worsening, with record numbers of respondents expressing doubts about growth potential, profitability, and regulatory barriers. Concerns about the predictability and visibility of the regulatory environment persist across various industries.geomaritter

Read more: European companies in China are under pressure from slower growth, overcapacity