China still a bright spot in the global economic gloom

The European Union Chamber of Commerce in China launched its sixth annual European Chamber Business Confidence Survey, which is published in partnership with Roland Berger Strategy Consultants. The survey of European companies in China shows that confidence in the Chinese market remains strong despite a current slump in business activities. The European Chamber Business Confidence Survey 2009 draws on feedback from over 300 European companies – the highest participation rate ever. The survey makes it very clear that virtually none of the respondents has come away unscathed from the crisis, with 98% of them reporting that it had impacted their businesses in China. But for most, that impact in China was dwarfed by the fallout in their domestic markets. The survey confirms that China is still a bright spot in the global economy and will rebound more quickly than the rest of the world.

In a press conference in Beijing on June 30 that was covered by more than 100 Chinese and international media, Roland Berger Partner Charles-Edouard Bouée and Jörg Wuttke, President of the European Chamber of Commerce, presented the results of the sixth annual Business Confidence Survey. In a break with the past tradition of autumn surveys, this year’s survey was pushed forward to the first half of the year in order to assess the immediate impact of the financial crisis on the members of the European Chamber.

This year's survey pool also had a greater proportion of more experienced companies than last year's. The results re-confirm that European companies are "in China for China" and expect to benefit from China's domestic consumption. However, European companies are also cautious about how China's long-term growth will be driven and encourage the government to take the next step in economic modernization and reform.

In line with Roland Berger's recently launched "Chinese Consumer Report 2009", Charles-Edouard Bouée and Jörg Wuttke emphasized that China is like a continent rather than a country and that smaller and less developed parts of China should not be neglected. Bouée said that consumption in China still accounts for a relatively small part of the GDP but this will change with increasing wealth, so companies should not lose sight of the potential in smaller cities. To further support European companies in China and its not so prominent areas, Roland Berger and the European Chamber will also publish additional findings from the survey on a local level.