On the eve of its first anniversary on April 8, the China Chamber of Commerce to the EU (CCCEU) made public the key findings of a EU Business Environment Survey, with six out of 10 Chinese businesses in the EU expressing concern over negative impact of the global coronavirus pandemic. 

The survey was distributed in earl March to members and companies represented by the CCCEU. Out of 1,000 enterprises which have invested in the European Union (EU), a sample of 100 was selected, of which 61% completed the survey.

The key findings presented in the Report are released today. The Survey Report sums up the key responses of the Chinese enterprises interviewed in the spring survey and formulates five policy suggestions to further improve the business environment in the EU. 

In brief, more than 60% of the companies interviewed said that the COVID-19 outbreak had a negative impact of on their businesses, and they expect these effects to continue at least into the second quarter of the year. Some remain optimistic (18%), while some are not sure of the possible consequences (18%). 

"As the survey findings tell us, the European market is not an easy one. We found that one in two Chinese businesses in Europe has encountered various operational difficulties; and in 2019, six out of 10 reported zero growth in revenues year-on-year," says CCCEU chairperson Zhou Lihong. 

Zhou adds that mounting difficulties, unexpected disruptions and rising uncertainties are changing the already-challenging business landscape between China and the EU.

"We are ready to explore more opportunities as the EU's trust in multilateralism and free trade is in its DNA," says Zhou. 

"We are deeply aware of the EU's commitments to realize a green and digital transformation while addressing pressing challenges."

In addition, nearly half of the interviewed enterprises see the impact of the geopolitical environment on the EU, which over the past decade has been affected, among other things, by the economic and refugee crises, strikes and terror attacks. 

The survey also paid attention to the work of the current European Commission, asking members for an evaluation of the policies put in place by the von der Leyen Commission in its first 100 days. Two-thirds of the companies think that the impact of the current EU policies cannot be determined yet. With regard to FDI screening measures, nearly 30% saw a negative impact on their operations. 

Lastly, our members point out some persistent difficulties in conducting business in the EU, namely: obtaining operation permits, securing credit and financing, paying taxes, and cross-border trade. Yet, despite the ongoing challenges, our members remain committed to the EU as their business destination: nearly half plan to increase investment by 5 to 20%.

The Survey Report comes days before the first anniversary of the CCCEU, which was inaugurated by Premier Li Keqiang on April 8, 2019 in Brussels. 

A year later, the Chamber has expanded its membership and the Secretariat, and remains committed to be a platform to facilitate sustained dialogue and information sharing between EU and Chinese stakeholders.