An annual survey of more than 500 European companies has found that slowing growth in China is weighing on company plans to grow their businesses in the world’s second largest economy.
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The economic worries are layered on top of long-running complaints about regulations and practices that companies say favor their Chinese competitors or are unclear, creating uncertainty for businesses and their employees. Others including The government is launching programs to boost consumer spending but confidence remains low because of a weak job market. Economic growth came in at a faster than expectedin the first three months of the year, but much of the GDP growth came from government spending on infrastructure and investment in factories and equipment.
Close to 40% of companies said they have moved or are considering moving future investments out of China. Southeast Asia and Europe are the biggest beneficiaries, followed by India and North America. Nearly 60% said they are sticking with their investment plans for China, but that was down from last year.
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