British Business in China: Sentiment Survey

As China emerges from three years of pandemic-induced disruptions, British businesses find themselves at a critical juncture. The British Business in China: Sentiment Survey 2023-2024, reflecting insights from over 300 diverse companies, sheds light on the challenges and opportunities shaping the landscape.

Business outlook

End of peak pessimism
Business sentiments are evolving from the peak negativity witnessed in 2022-2023, with a slow return to optimism.

Treading water on investment
Amidst uncertainty, many companies are adopting a “wait-and-see” approach when it comes to investment, maintaining current levels in 2024.

Size matters
Small and medium-sized enterprises (SMEs) bear the brunt of knock-on effects, facing increased difficulty in business operations, with a large proportion still reporting revenue levels below pre-pandemic times.

Issues driving sentiment

Economy takes centre-stage post-COVID
China’s reopening in 2024 shifts focus from pandemic-related challenges to broader economic concerns, on both a global and domestic level.

Geopolitical concerns remain prominent
Uncertainty surrounding China’s political relationships continues to impact businesses, with unpredictability in trade policies negatively affecting business operations.

Talent and recruitment priorities evolve
Despite the easing of COVID-19 travel restrictions, foreign talent attraction takes a backseat. Companies now prioritise finding skilled workers from the Chinese talent pool.

Positive reaction to government approach
British businesses respond positively to increased government-business dialogue and initiatives such as the 24 Point Guidelines for Attracting Foreign Investment, as a means to address regulatory challenges and market access issues.

Opportunities remain

R&D opportunities for British businesses in China provide collaboration opportunities
Interest sparks in Research and Development (R&D) areas such as sustainability, AI, and technological advancement, aligning with China’s growth objectives in these sectors.

While challenges persist, the positive response to increased dialogue and government initiatives provides a glimmer of hope. If implemented effectively, the proposed guidelines could drive investment, job creation, and foster economic recovery for both Britain and China.

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For additional inquiries, please contact us at advocacy@britishchamber.cn.

The British Business in China: Sentiment Survey 2023-24 measures the outlook of British businesses across the country for 2024, representing the voices of our members across goods and services, from small businesses to large multinationals with on-the-ground operations.

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