British and German Firms Struggle to Operate in China, Worried About Next Year's Outlook

According to two new surveys published by trade chambers representing British and German companies in China, businesses are facing increasing challenges in the country and are concerned about the outlook for the coming year.

A recent survey conducted by the British Chamber of Commerce in China found that approximately 58% of British companies believe it has become more difficult to operate in Asia over the past 12 months; this marks the fifth consecutive year in which a majority of respondents reported a tougher environment.

A separate survey by the German Chamber of Commerce in China revealed that less than one-third of firms are optimistic about their industries in 2025. The surveys come at a time when foreign investments in China are declining due to geopolitical tensions, pessimism regarding the world’s second-largest economy, and stronger competition from Chinese firms in sectors such as automotive.