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European firms shift investment from ‘costly’ China


A growing number of European firms are considering shifting investments from China to other emerging markets, although the country remains a top investment destination and an increasingly important strategic market, according to a new report from Europe’s largest business group in China.
The European Union Chamber of Commerce in China said in its 29 May annual survey of business conditions that rising costs and regulatory challenges are the biggest issues facing its companies in China, and said that 22% of them were considering shifting investment away from the country. It called that a “significant” percentage.
Still, the chamber’s report said the European firms continue to put money in China. A little more than 60% of them plan new investments there, more than half are looking at entering new provinces, and almost three-fourths of them plan to hire more staff in the next two years.


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