Today’s News
British companies operating in China remain gloomy about their business prospects, with many citing worsening economic conditions, despite Beijing’s recent economic stimulus efforts. According to the British Chamber of Commerce in China’s latest survey, released on December 3, 58% of firms reported that doing business in China has become more challenging over the past year. Of those, 86% attributed these difficulties to economic factors.
Image Source: The Edge Malaysia
“British businesses continue to face significant headwinds, from China’s economic slowdown to regulatory hurdles,” the chamber noted. “Revenue expectations are down, and businesses’ optimism for 2025 is low despite the announcement of stimulus measures.”
The survey, which gathered responses from the Chamber’s 400 members between September and November, reveals that this is the fifth consecutive year of declining business sentiment. Only 41% of companies expect conditions to improve in 2025.
Even with China’s efforts to boost its USD 19 trillion economy through stimulus measures, the results highlight ongoing struggles for foreign firms. The country’s economic recovery has been slow after the lifting of strict COVID-19 restrictions in late 2022, and analysts are warning of potential stagnation similar to Japan’s “lost decade” in the 1990s.
High-profile companies like AstraZeneca, BP, Jaguar Land Rover, Standard Chartered, and Rolls-Royce are among the Chamber’s members, all of which are grappling with the difficult environment. The Chamber also noted that while U.K.-China bilateral ties have improved—following visits from British Foreign Secretary David Lammy and Prime Minister Keir Starmer—concerns over China’s state subsidies and trade tensions with the U.S. and EU remain.
“Shaping a long-term plan for China will be difficult as the U.S. embarks on another Trump presidency and the EU adopts an increasingly protectionist stance against China,” the Chamber concluded.
Other News
Trump Opposes Nippon Steel Deal, Backs U.S. Steel
President-elect Donald Trump vowed to block Nippon Steel’s acquisition of U.S. Steel, citing national interests. He emphasized that tax incentives and tariffs would strengthen U.S. Steel.
Asian Stocks Rise, Yuan and Euro Weaken
Asian stocks gained, driven by strong tech sector performance, following record highs in U.S. markets. The yuan dropped to a 13-month low amid rising U.S. tariff threats, while the euro sagged.
S&P 500, Nasdaq Hit Record Highs on Tech Gains
The S&P 500 and Nasdaq closed at record highs, driven by a surge in tech stocks like Tesla, as investors awaited key economic data, including the jobs report on Friday. The Dow declined.
Risk Disclosure:
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.
Disclaimer:
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
