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Golden age for foreign companies in China 'is over'

Issued at 2014-09-10



The golden age of rapid growth and easy profits in China is at an end, according to a group representing 1,800 European companies doing business in the world’s second-largest economy.

From the late 1990s to the end of last year, most European businesses grew at a double-digit pace, said Joerg Wuttke, president of the European Chamber of Commerce.

“Now the demographic sweet spot is turning against China. Exports do not really drive the economy anymore and how much infrastructure can you build?” he said. “The mood has been souring over the last few years. 

Expectations have not been met. The Chinese talked about levelling the playing field but did not deliver.”
In response, foreign investment into China has slowed dramatically this year. “There was a fall of 17pc to 18pc for European and American companies,” said Mr Wuttke.

“Japan has fallen by 50pc. When it comes to European firms, the slowdown is because of this slower growth pattern, overcapacity and because European companies are finding it difficult to find new avenues for business in China.”..


Source: The Telegraph



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