Doing business in China becomes more difficult, but its exports are difficult to resist

European companies, many of which have been operating in China for decades, are increasingly having trouble doing business in the country, another sign of the way the weakness of the domestic economy of China and opaque regulations even test long -standing multinational commercial links.

European car manufacturers quickly lose market share and face many political difficulties. Volkswagen Acrantops last December to sell its factory in the northwest of the Xinjiang region of China, where Beijing repressed Muslim ethnic groups. European pharmaceutical equipment and medical imagery companies found themselves locked in a large part of the state -managed health system.

An in -depth annual study of companies published Wednesday by the European Chamber of Commerce in China revealed that almost three -quarters said it became increasingly difficult to operate in China. It was the fourth consecutive year that the survey showed the deepening of corporate pessimism.

The proportion of European companies that plan to extend their operations in China also fell to a record hollow, with only 38% saying that they intend to do this this year. European investment was important to bring Western technology to China and to bring Chinese products to the world markets.

The Chamber, which has estimated the challenges that companies have faced in China for a quarter of a century, represents the interests of some 1,700 companies, industrial giants and VW to small businesses with a handful of employees who are cog in world supply chains.

The chamber’s investigation also found a somewhat contradictory trend that could prove to be embarrassing for President Trump’s attempt to protect American manufacturing from China with prices. Even if European companies limit their own investments in China, some also buy more and more components from Chinese companies. This makes their supply chains even more dependent on China.