Confidence of EU Companies in China Drops to Historic Low: Survey

The results indicate a silent decoupling is underway, according to an analyst.

People visit the Volkswagen booth during a media day for the Auto Shanghai exhibition in Shanghai, China, on April 19, 2021. Aly Song/Reuters

The confidence of European companies operating in China has dropped to a record low, according to an annual survey, with respondents citing China’s economic downturn and rising geopolitical tensions.

In the European Union Chamber of Commerce in China’s 2025 Business Confidence Survey published on May 28, a record 73 percent of the 503 respondents said that it’s more difficult to do business in China. The survey of 503 chamber members was conducted in January and February, which was before the tariff war escalated in April.