European businesses in China are becoming more positive, even as the EU prepares to retaliate against Chinese goods.

European businesses in China are becoming more positive, even as the EU prepares to retaliate against Chinese goods and China warns it is ready to retaliate as well.

On May 27, 2026, at 8:10 AM, Bloomberg News reported that a recent survey by the European Union Chamber of Commerce in China indicates that European companies in China are becoming more positive about business prospects, despite escalating trade tensions between China and the European Union (EU), and Brussels considering new measures to counter the rapid increase in Chinese exports.

An annual survey released on Wednesday (May 27) found that 35% of companies surveyed see their industries growing in China over the next two years, up from a record low of 29% in 2025.

Meanwhile, 47% of companies indicated that the business environment in China has become more politicized over the past year, the lowest level since 2566.

Denis Depoux, Global Managing Director of Roland Berger, a German consulting firm that co-authored the survey, said the improvement was partly due to crisis fatigue, with foreign companies beginning to adapt to the business environment in China, and European headquarters also starting to lower their expectations.

“Business confidence remains very low, but companies are becoming more accustomed to the situation,” De Pouz said.

The recovery in business sentiment comes amid strained relations between Beijing and Brussels, with EU officials preparing new measures to counter rising Chinese exports, which the EU sees as partly fueled by weak domestic demand in China, an artificially low yuan, and government subsidies.

Bloomberg earlier reported that the European Commission is preparing to hold internal discussions on Friday regarding stricter trade measures against China, while the Chinese Ministry of Commerce has announced it is ready to retaliate if the EU continues to restrict imports of Chinese goods.

Although recent surveys reflect improved signs, overall business confidence remains near historically low levels in several areas, including ease of doing business and profitability outlook.

Approximately 68% of companies indicated that doing business in their industry has become more difficult over the past year, the second highest proportion in at least 10 years. Meanwhile, fewer than 20% of companies are optimistic about profit prospects over the next two years, the third lowest level since 2013.

The chamber's members include many large European companies such as Volkswagen and Unilever, and it is recognized by both the Chinese government and the EU administration as the official voice of European business in China.

China has previously expressed dissatisfaction with the EU's measures that prioritize European manufacturers in government procurement, as well as restrictions on certain types of foreign investment in Europe. Meanwhile, European companies in China have warned that new supply chain regulations and other measures are increasing the risks of doing business in China.

In recent months, several European leaders have visited China, including French President Emmanuel Macron in December, German Chancellor Friedrich Mersey in February, and Spanish Chancellor Pedro Sanchez in April. Germany's Economy Minister is also visiting China this week.

However, establishing a unified EU position on China has remained difficult in the past. Differing opinions within the bloc have delayed the push for the EU's Industrial Accelerator Act, aimed at supporting European manufacturers, and have greatly angered China.

Reference: bloomberg.com

Read news related to All situations around the world can be found here.