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(Yicai Global) April 1 -- Six out of every 10 Chinese businesses in the European Union has expressed concerns about the effect of the Covid-19 pandemic, according to a report compiled from a survey by the China Chamber of Commerce to the EU.
These firms expect the downsides of the outbreak to continue into at least the second quarter of this year, the CCCEU said in the report published yesterday. 18 percent remain optimistic while another 18 percent are unsure how things will pan out. Half of the companies surveyed still plan to increase investment in the EU by between 5 percent and 20 percent, though the report did not disclose over what time period.
"The European market is not an easy one," said CCCEU Chairman Zhou Lihong said. "We found that one in two Chinese businesses in Europe has encountered various operational difficulties; and in 2019, six out of 10 reported zero growth in revenues year-on-year."
As Covid-19 continues to spread worldwide, EU member states are likely to adopt more stringer measures that could hamper business activity, the CCCEU said, adding that there will likely be a rise in the number of Chinese companies affected.
Two-thirds of the companies surveyed feel it is too early to know what impact the policies put in place by the von der Leyen Commission will have, and nearly 30 percent said they have experienced a negative impact when making foreign direct investments. Several mentioned persistent difficulties conducting business in the EU in terms of obtaining permits, securing credit and financing, paying taxes and cross-border trade.
The CCCEU distributed the survey in March to 1,000 members and companies it represents that had invested in the EU. A sample of 100 companies was selected, 61 percent of which completed the survey.
Editors: Xu Wei, James Boynton