European firms 'still confident'

Volume of trade with China shrinking slightly but investment growing

Despite the outlook on profitability declining to an all-time low in China, European companies remain committed to the Chinese market, at the same time calling for further reforms to promote the rule of law and fairer competition.

"Although European companies are faced with tougher conditions in China, including slower economic growth in European and Chinese markets, rising labor costs and competition from privately owned Chinese companies, they are still confident in the marketplace," said Davide Cucino, president of the European Union Chamber of Commerce in China.