European Union Chamber of Commerce: Communist China’s business environment is “toxic”, 23% of EU companies are considering divestment

On June 20, the European Union (EU) Chamber of Commerce in China released a report saying that Chinese Communist Party (CCP)’s unpredictability is “toxic” for companies doing business in Communist China at a time when many parts of the world are getting out from the pandemic. According to the survey, about 23% of European companies in Communist China are considering pulling investments out of the country. In the survey, the number of European companies reassessing their investment options in Communist China reached a 10-year high and more than double the 11 percent in the February survey, the chamber said. There were 372 businesses participated in the April survey, while 620 businesses participated in the February survey.

Nearly 60% of respondents lowered their revenue forecasts for this year, citing the impact of CCP’s pandemic prevention and control; about 78 percent said Communist China’s business environment has become less attractive due to CCP’s COVID-19 strategy.

Bettina Schoen-Behanzin, vice-chairman of the EU Chamber of Commerce in China said, Communist China’s current “dynamic zero” policy “leaves headquarters with no choice but to look for other locations.” “The world will not wait for China.” “The only thing that can be predicted in China today is its unpredictability, which is detrimental to the business environment,” Xu said.