China’s economic slowdown pushes UK firms to take ‘wait-and-see’ approach to investments, but 2024 optimism returns
- British Chamber of Commerce in China survey shows most British-invested firms will maintain investment levels in China for the coming year
- Economic uncertainty was cited as a reason for decreasing investments, with the majority seeing 2023 to be more difficult than last year
British companies are taking a “wait-and-see” approach to investments in China as the world’s second-largest economy eases its way out of three years of the coronavirus, the British Chamber of Commerce in China said on Tuesday.
But the “British Business in China: Sentiment Survey” for 2023-24 showed firms are scoping for eventual new forays into artificial intelligence and technology.
“A slow Chinese economic recovery and an increasingly uncertain geopolitical landscape has left businesses unsure of prospects going into 2024 and beyond,” the chamber said.
Of the 301 firms who responded to the survey, 60 per cent considered 2023 to be more difficult than last year, which was marked by lockdowns that hobbled labour and transport in China.
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But respondents also showed a “slow return to optimism”, with 46 per cent “positive” about their 2024 prospects.