Business confidence among European firms operating in China has improved after reaching record lows last year, the EU Chamber of Commerce in China survey showed on May 27 [1, 2, 3]. Fewer companies now view China’s business environment as more politicized than the year before. The survey found fewer than half of respondents said the environment had become more politicized, down from 52% in 2025 according to one source [2]. Another source placed the figure at 47%, the lowest since at least 2023 [3].
About 68% of surveyed firms reported business conditions had become more difficult in China, an improvement from 73% the prior year [2]. Around 35% of respondents were optimistic about their industry’s growth in China over the next two years, rising from a record low of 29% in 2025 [3]. The survey was conducted from January to February 2026, covering 549 European companies operating in China [3].
The EU Chamber said that some of the improvement could be attributed to China’s relative stability amid intense global volatility. “China has demonstrated itself to be a relatively stable manufacturing, sourcing and investment destination,” the Chamber said [2]. Denis Depoux, global managing director at Roland Berger, added that part of the sentiment uplift is linked to “crisis fatigue,” as some companies adjust to prolonged uncertainty [3].
The survey results represent a tentative rebound in European firms’ sentiment after a challenging period marked by increased politicization and tougher conditions. The precise share of firms perceiving growing politicization differed slightly between sources but confirmed a downward trend [2, 3].
The EU Chamber and associated stakeholders will likely monitor business sentiment closely in future surveys, with the next scheduled data collection expected in early 2027.
