The European Union Chamber of Commerce in China released a survey report on the 8th, outlining the impact of the recent escalation of tariffs and trade measures between China and the United States on its member companies. The survey results show that while the direct impact is relatively limited, it has led to a sharp increase in uncertainty for doing business in China.
The survey showed that nearly half of the members surveyed were affected by China's tariffs on US goods. Meanwhile, over two-thirds of members said the US tariffs had not affected imports from China. This can be attributed to the "In China, for China" strategy adopted by many chambers of commerce members.
However, the trade war has severely dampened business confidence. Fifty-nine percent of businesses surveyed said that doing business has become more difficult since the beginning of 2025; over 60% expect competition to intensify; and 58% expressed concerns about future profits.
While 57% of the companies surveyed stated that their business strategies have not changed, they will continue to monitor the evolving situation. Among those that have already taken action, 17% said they are adjusting their procurement methods, 14% said they are postponing investment or business expansion in China, and another 14% said they are considering increasing investment in China.
China's FDI plunges by 50% in the first quarter
Separately, Taiwan's representative to Singapore, Tong Zhenyuan, posted on his personal Facebook page on the 11th, pointing out that according to the latest preliminary statistics released by China's State Administration of Foreign Exchange, net foreign direct investment (FDI) in China in the first quarter of 2025 will be only US$14.7 billion, a sharp drop of more than 50% from US$34.06 billion in the fourth quarter of 2024, a single-quarter decrease of US$19.4 billion, reflecting that "foreign investors are still cautious about investing in China."
