European business sentiments towards China have fallen to a historic low.

Optimism among European businesses regarding the Chinese market has reached the lowest level in the history of observations due to slow growth and geopolitical concerns. According to the annual survey by the EU Chamber of Commerce in China, 73% of respondents believe that doing business in the country has become more difficult compared to the previous year, which is the highest figure in the last four years.

A recent study released on Wednesday was conducted based on a survey of 503 respondents in January and February. The results showed that foreign companies are facing enormous difficulties in China after last year's pandemic lockdown. Although sentiments among businesses are pessimistic, companies are still finding opportunities in supply chains in China.

Record-low sentiments indicate that only 12% of respondents expressed a positive outlook on profitability in China over the next two years. Companies dealing with medical equipment are facing discrimination due to government procurement that favors local manufacturers. The pessimism in the survey aligns with findings from a similar survey of American companies, which also showed a significant number of businesses considering relocating production or supply out of China.

According to the surveys, businesses in China are encountering numerous challenges and are already seeking alternatives due to risks and difficulties in the country.