Sentiment Survey 2023:
British Business Treading Water
British businesses are effectively treading water after re-opening, with muted optimism for 2024 amidst geopolitical and economic concerns compounded by a slow recovery from COVID-19.
Results from the British Chambers of Commerce in China’s British Business in China: Sentiment Survey 2023-24 reveal a delicate balance of optimism and caution, echoing the ongoing challenges faced by British companies in the Chinese market.
Key Takeaways
Reduced negativity, but cautious optimism:
60% of British businesses report that 2023 was more challenging than the year before
Economic recovery impacting investment:
Many British companies are still adopting a “wait-and-see” approach, but fewer are leaving the China market entirely
Global landscape adds complexity:
42% of British businesses cite unpredictability in other countries’ trade policies towards China as a significant operational challenge.
Proactivity by the Chinese government received positively:
British businesses are responding positively to the introduction of a spate of supportive measures, such as August’s 24 Point Guidelines for Attracting Foreign Investment, and increased communication with the Chinese government.
Regulatory challenges persist:
Despite moves to create a framework to address challenges facing foreign businesses by the Chinese government
Opportunities remain:
Areas such as sustainability, AI and innovation act as beacons of opportunity, aligning with China’s strategic growth ambitions.
Pessimism declines
Comparison of business outlook for the next year between 2018 and 2023
… but business is still challenging
Q: Has doing business in the Chinese mainland become easier or more difficult over the past 12 months?
The findings from 300 businesses across a multitude of sectors, sizes, and legal setups, show a mixed picture. Whilst 60% of businesses perceived 2023 as more challenging than the previous year (down from 89% last year), 46% express optimism about their prospects in 2024. Economic prospects and challenges from a complex global environment have come to the fore, impacting sentiment.
Despite this, opportunity remains in areas of R&D and UK-China collaboration. British businesses are focusing R&D efforts on areas such as sustainability, AI, and technological advancement, aligning with China’s strategic growth objectives for these sectors.
Increased government-business dialogue and initiatives such as the 24 Point Guidelines for Attracting Foreign Investment, which address a number of regulatory challenges facing British businesses in the market, all contribute to positivity. If implemented effectively, the proposed guidelines could drive investment, job creation, and foster economic recovery for both Britain and China.
FIND OUT MORE
Scan the QR code below or click ‘Read More’ to read the full report.
For hard copies or more details about the survey and our advocacy work, please contact:
advocacy@britishchamber.cn
or
mavis.yang@britchamswchina.org
Making your voice heard
Briefing with the
Department for Business and Trade
This Monday, the report was presented to the Department for Business and Trade in a special pre-briefing. With over 300 responses to our 59 questions, spanning Business Environment and Investment Outlook to Localisation and Diversification, the Chamber’s team provided sector specific insights on the key concerns, market access barriers, and areas for collaboration that British businesses report exist for their operations in China. Thank you to DBT and the British Embassy Beijing team for the warm welcome!
The British Business in China: Sentiment Survey 2023-24 measures the outlook of British businesses across the country for 2024, representing the voices of our members across goods and services, from small businesses to large multinationals with on-the-ground operations.
Click the images to read more about each edition of the annual survey
