A key measure of CEO confidence in China showed pessimism for the first time since the pandemic, despite the country rolling out a raft of stimulus measures.
A survey by the Conference Board, a U.S.-based think tank, found that sentiment among the country’s top business leaders, primarily U.S. and European companies, fell to 49 from 56 in the previous six months. A number above 50 indicates optimism, and a number below 50 indicates pessimism.
The survey was conducted between September 30 and October 28, after the Chinese government announced interest rate cuts and other measures to support growth, but before the election of President Donald Trump, who has threatened to impose tariffs on Chinese goods after taking office. It was carried out until today.
The survey highlighted lingering concerns about China’s economy this year. New data on Monday showed retail sales growth unexpectedly slowed in November, another reminder of the consumer sector’s weakness. Chinese policymakers recently made increasing consumption a top economic priority for 2025, for at least the second time in the past decade.
China further eased travel policies on Tuesday to support economic activity, starting to allow foreign tourists in transit to enter the country without a visa for up to 10 days.
CEOs surveyed cited economic slowdown as the biggest risk facing their businesses, saying customers are becoming more price-sensitive, demanding deep discounts or cutting back on purchases, putting pressure on profits. He said there was.
More than half of executives said local competitors have been agile in responding to these market changes, often offering comparable or superior products at much lower prices.
“While CEOs are optimistic in the long term, there is no doubt that multinationals are having to make tough decisions to compete in the current climate,” said Alfredo Montufar Hell, head of the Conference Board’s China Center. ” he said.
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