European Companies in China Feel the Squeeze as Economic Growth Slows Down from anon company Watch Video

⏲ Duration: 0:46
👁 View: 315K times
✓ Published: 11-May-2024

Description:
European companies operating in China face increasing pressure as China's economic growth slows down and overcapacity issues rise. Profits margins for European firms in China are at an 8-year low, with only 30% reporting higher profits than their global average. The slowing real estate sector and geopolitical tensions have contributed to China's economic downturn. Overcapacity is a major issue, especially in industries like construction, automotive, and engineering. It has led to price drops. Getting paid on time by Chinese clients is also a growing challenge as it became more difficult to enforce contracts versus the prior year.