As China emerges from three years of pandemic-induced disruptions, Austrian businesses find themselves at a critical juncture. Covid lockdowns might be a topic of the past, but the economy is still recovering from those pandemic years. Stagnant consumption, high youth unemployment and a tumbling real estate sector are weighing on the growth perspective of China. Nevertheless, business sentiments are slowly evolving from the peak negativity witnessed in 2022. The survey reveals a delicate balance of caution and optimism, echoing the ongoing challenges faced by Austrian companies in the Chinese market.
Almost half of the Austrian firms in China complain about a decrease in turnover, order level and demand in the past 12 months. Additional pressure comes from regulatory restrictions like export restrictions, cybersecurity regulations for data transfers or the new anti-espionage law. Despite these major difficulties and uncertainties, many companies are adopting a “wait-and-see” approach when it comes to investment, maintaining current levels in 2024.
Generally, there remains much room for improvement. Calls for predictable economic policies, legal certainty and reduction of bureaucracy are as strong as ever. At the same time, the Chinese infrastructure and digitalization level is highly appreciated by Austrian companies active in China.
These are just a few findings of the Austrian Business Confidence Survey, which we conducted among subsidiaries of Austrian companies in China in October 2023. These results coincide largely with the findings of recent surveys of other European national chambers. They feed into our assessment of confidence of Austrian businesses in the market and our understanding of their views, perceptions, and motives. This in turn will help us to tailor our services to their needs.
Find out more details by downloading the survey below.
