European business in China: trade war complicates conditions

The trade war between Beijing and Washington continues to have an impact on the business environment in China, making it more difficult for European companies operating in the country. According to a survey by the EU Chamber of Commerce in China, most companies have managed to limit the direct damage from the trade war, although many acknowledged that business conditions have become more difficult this year.

The survey, which was attended by more than 150 firms, was conducted from April 17th to April 27th. About 59% of respondents noted that the business environment in China has become more difficult since the beginning of 2025. At the same time, almost half of the companies said they were affected by the tariffs imposed by Beijing on American goods, while less than a third saw the impact of Washington's duties on their exports from China.

The escalation of the trade war has led to a decrease in confidence among companies, which has become one of the most devastating consequences of the confrontation. Donald Trump raised US tariffs to record levels, and Beijing responded with similar measures. However, many European companies have managed to mitigate the direct impact of tariffs thanks to the «in China, for China» strategy. This approach allowed them to adapt to the new conditions and minimize the damage from the trade war.