The 2022-2023 edition of the British Chamber of Commerce in China's British Business in China: Sentiment Survey has been released today, shedding light on the outlook and perspective of almost 300 UK companies in the Chinese mainland.
Our survey found that COVID-19 controls are hampering business operations and have had a significant negative effect on the sentiment of British businesses operating in China in 2022. After a third year of COVID controls, business pessimism in China is at a record high. Employing foreign staff remains the top challenge facing UK companies in China, hampering relationships between global headquarters and China offices. Continued uncertainty and ongoing unpredictability in the business environment has shaken UK investor confidence.
The British chambers of commerce in China call for a clear path to a more stable and predictable business environment, implemented consistently and clearly across all levels of government so that businesses can plan with greater certainty and less disruption.
Businesses report being constrained by market access barriers, coupled with some market closings and feeling less welcome in the market. The survey also shows a substantial drop in the ability for companies to recruit enough of the talent they need, which is having an impact on relationships between global headquarters and China offices.
Despite a spate of new measures being rolled out over the past two weeks aimed at relaxing COVID-19 control measures, uncertainty remains as to what the implementation of these measures will mean in reality given many of these are still in the process of taking effect.
The top three regulatory challenges facing British businesses in 2022-23 are:
- Employing foreign staff
- Transparency of the business environment
- Navigating cybersecurity and IT regulations
To access the Survey please click here.
Our thanks to the British Chamber of Commerce China for kindly sharing this essential report.
Comments