European Business in China: Position Paper 2023/2024

Dear Members and Friends of the Swisscham,

The European Business in China Position Paper (Position Paper) is the European Chamber's most important publication and the cornerstone of its annual advocacy plan. Compiled by its 48 working groups, sub-working groups, desks, fora and for over a nine-month period, more than 1000 constructive recommendations contained in the Position Paper illustrate both the depth of the challenges faced by European companies in China and their commitment to improving the business environment.

This year's Executive Position Paper focuses on how China's post-COVID-19 recovery has faltered and what Chinese policymakers can do to address this.

China's decision to reopen its borders on 8th January 2023 was a welcome surprise and many believed that a swift economic rebound would follow. The political will in China also seemed to finally match businesses' expectations for increased opening of the economy. However, as the year has progressed, many areas of China's economy failed to perform as hoped.

The much-anticipated release of pent-up consumer demand did not take place and serious structural challenges have continued to weigh on growth. At the same time, although official announcements aimed at improving the business environment have been released, so has a slew of national security-focused legislation, which has deepened uncertainty and raised compliance risks. This has sent mixed messages to the business community, leaving many companies questioning what kind of relationship China wants to have with them.

Your SwissCham Team