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British Business in China: Sentiment Survey

Cybersecurity and internet restrictions the most significant challenge to UK business in China


●   The British Chambers of Commerce in China cite cybersecurity legislation and internet restrictions as most significant challenge to members.

●   While more than 40% note an improvement in intellectual property protection, it remains the second most significant concern with calls for more concerted focus.

●   Businesses are optimistic about their future in China and intend to increase investment in 2019.


18th December 2018 − The British Chambers of Commerce in China today release the inaugural British Business in China: Member Sentiment Survey. The survey captures the views of 212 British businesses operating on the ground in China, representing over £3 billion (US$3.8 billion) of revenue in their China operations. The survey looks at views on the business environment, market access, Brexit and US-China trade tensions.


At a time of flux in international economic relations for both the UK and China, British business is expressing overall confidence in the Chinese market. However, market access barriers remain and must be addressed. Despite progress in the opening up of a number of sectors over the last 12 months, the British business community is still waiting for further progress on other sectors that are still restricted to UK business. An open market will allow British businesses to realise their potential in China and benefit both economies.


British Chamber Chair Nicholas Holt commented that: “Our survey reveals British companies have concerns around the business climate in China. Of these, challenges around cybersecurity, intellectual property rights protection and barriers to obtaining licences were the top three issues. We urge policy makers to address these to ensure fair and reciprocal treatment for British companies in market.


“A significant proportion of respondents remain optimistic around the future of doing business in China. We hope that necessary measures are taken to ensure that all that glitters really is gold in this new era of UK-China relations.”


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Key findings:


●  65% of respondents are optimistic about the business outlook for their industry over the next two years, and 67% intend to increase investment in their China operations over the next 12 months.

●  The three most concerning market access barriers for British businesses in China are:

1. Cybersecurity and IT restrictions.

2. Intellectual property rights protection.

3. Licensing and certification difficulties.

●  50% of firms believe that conducting business in China in the past year has stayed the same, 31% say it has become more difficult and 19% say it has become easier.

●  Ease of doing business improved the most according to the media and publishing; education; and aerospace industries, whereas respondents in real estate, logistics and accountancy were the most likely to believe business has become difficult.

●  In terms of Brexit:

   ○  55.7% believe that a no-deal Brexit would have no impact on their organisation’s revenue in China, while 23.8% believe it will have a negative impact.

   ○  46.7% believe the possibility of a future UK-China FTA would benefit their businesses in China.

   ○  Uncertainty around Brexit is having a negative impact on 27.7% of companies.

●  US-China Trade Tensions:

   ○  52.2% of respondents report a negative impact from the trade tensions.

   ○  21.2% have experienced a drop in demand for goods and services as a result of the tariffs.

   ○  If tariffs on $250 billion of exports to the US increase from 10% to 25% then 13.5% of goods-related businesses stated that they would be prepared to move production capacity out of China.


END



For more information, please contact:

Christopher Sargent at chris.sargent@britishchamber.cn


For media enquiries, please contact

Anika Patel at anika.patel@britishchamber.cn; +86 18513342475


About the British Chambers of Commerce in China:


The British Chambers of Commerce in China consist of the China (Beijing), Shanghai, Guangdong and South West Chambers. We are a group of independent, not-for-profit organisations for British business focused on boosting UK-China trade and investment across China on behalf of a strong and diverse membership. With over two decades’worth of business experience in China, we provide advocacy, advice and networking opportunities for our members, helping their business reach its full potential in one of the world’s fastest growing markets. The British Chamber of Commerce in China is recognised as official representatives of British business in China by both the British and Chinese authorities.


Please visit:

-  The British Chamber of Commerce in China: https://www.britishchamber.cn/en/

-  The British Chamber of Commerce Shanghai: http://www.britishchambershanghai.org/en/home

-  The British Chamber of Commerce Guangdong: http://www.britchamgd.com/

-  The British Chamber of Commerce Southwest China: http://www.britchamswchina.org/


Click here to download the full survey report.






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