'Global economic slowdown affects EU firms in China'
A slowdown in both the Chinese and global economies is the biggest issue affecting European firms on the mainland, according to the European Chamber of Commerce in China.  The chamber found the number of European firms that see China as a top-three destination for future investment was at its lowest total on record. It has recorded this figure since 2010. In its position paper released on Wednesday, the EUCCC said that as rising interest rates and inflation squeeze demand in Europe and the United States, companies in China are in contrast battling a sharp decline in prices as the risk of deflation weighs on the world's second-largest economy.  BASF, Maersk, Siemens, and Volkswagen are among the members of the chamber. The chamber's findings, which were based on the views of members from February to early March, revealed that a record number of companies had lost business last year due to market access and regulatory barriers.  The paper added: "With new and forthcoming European and US legislation set to compel many companies to demonstrate greater transparency in their China operations, the trend of supply chain diversification and divestment is likely to strengthen in the medium-term."  Foreign direct investment (FDI) into nation has slowed substantially since the country dropped Covid-19 curbs late last year, with dollar-denominated FDI down 5.7 percent in January-May compared with the same period last year.  The EU's trade deficit with China widened in 2022 to reach 396 billion euros, leading European Commission President Ursula von der Leyen to call on the bloc to "de-risk" economically and diplomatically from China. (Reuters)