The trade dispute between Beijing and Washington significantly complicates the work of European companies. In a survey by the European Union Chamber of Commerce among its members in China, 59 percent stated that it had become more difficult for their business since 2025.
“The trust of the companies is clearly weakened,” said chamber president Jens Eskelund in Beijing. This is mainly due to the geopolitical tensions between the USA and China. 44 percent of the member companies therefore stated that China’s tariffs against the US goods and thereby increasing prices.
Dark prospects
However, according to the EU Chamber, many European companies in the People’s Republic have been most concerned with the situation of the Chinese economy since the end of Corona pandemic. Eskelund called overcapacity, hardly any consumer growth, an exaggerated competition and falling margins.
The result: According to the advocacy of European companies in China, the business prospects for the next two years are “very dark”. Only seven percent of the 162 companies that took part in the survey from mid to the end of April stated that they were optimistic about increasing profits.
According to the survey, 57 percent of the companies said that they have not changed their business strategy and observed the situation. China’s supply chains are strong and competitive, said Eskelund. “If you compete in the worldwide market and you have global supply chains and if you want to keep up with price and quality, China is still the place where you have to be,” he said. While there is a lot of risk reduction in Europe – including derisking – he sees more increasing dependence on China.
Hope for meetings in Switzerland
At the beginning of April, the trade dispute between Washington and Beijing escalated. US President Donald Trump put additional tariffs from 145 percent on Chinese imports. In return, China reacted to US products with 125 percent additional tariffs. The trade between the two largest economies in the world has come to a standstill. Hope now germinates before a meeting of representatives of both sides in Switzerland next weekend.