ADVANTAGE AUSTRIA, Austria’s official business representation abroad, annually conducts “the Global Business Barometer” (GBB) survey world-wide. This confidential online study, carried out in collaboration with the Vienna University of Economics and Business, also gathered in October and November 2024 insights from 66 Austrian subsidiaries in China. The results are summarized and are also communicated to stakeholders in China, Austria and the EU to better get a better understanding of the situation of Austrian companies in China and in which areas improvements are necessary to improve investor confidence.
The GBB China survey showed for 2024 a rather negative sentiment among Austrian companies with subsidiaries in China. The majority of the surveyed companies thought that the general economic climate and economic situation in China deteriorated in 2024, with the economic climate receiving the worst ratings since the survey started in 2017. Only around 20% of respondents expect an improvement in 2025. When asked about the condition of their own company in China, most reported unchanged or decreased values in 2024 in terms of total sales, order book status, capacity utilization, number of employees, and investments. Expectations for 2025 are however more optimistic, especially regarding expected total sales and new orders.
Regarding individual location factors, the subsidiaries positively noted that China scores particularly well in infrastructure, digitalization, and the availability and quality of local suppliers. Artificial intelligence applications are on the rise in China and will also be more widely used within the companies. On the negative side, it was mostly mentioned that the payment morale has worsened, public subsidies and bureaucracy are a drawback, labor costs are rising, and tariffs and taxes are seen as problematic. Looking forward, protectionism, economic sanctions, and systemic rivalry and geopolitics could weaken the attractiveness of China as a business location for our Austrian companies in China.
Austrian subsidiaries consider active communication with Chinese political and regulatory institutions and consultations with the ADVANTAGE AUSTRIA network in China as instrumental to further pursue their interest in China.
