Demand for capacity for export from China is declining

Demand for capacity for export from China is declining

Demand for capacity for exports from China is declining, mainly due to full inventories in Europe and the US, where operator utilization has also declined in the short term. But in the long run, some companies may leave China.

The EU Chamber of Commerce in China (EUCCC) said in its survey of European companies operating in China that while companies generally remain favorable to China, China's Covid policies and the conflict in Ukraine have given some "pause for thought".

In its report on a survey conducted earlier this year, the EUCCC warned: "Some [companies] may vote with their feet if the current wave of uncertainty continues, especially as other markets offer greater predictability."

According to the survey, nearly a quarter of respondents are considering pulling planned investment out of China because of its policies against COVID-19, the highest figure in more than a decade and double the number seen in recent years.

“The war in Ukraine has also hit investor confidence, with 7% now considering moving current or planned investment out of China as a result, and 33% believing the market has become less attractive as a place for future investment due to geopolitical tensions garnering more attention. in meeting rooms," the report says.