Chinese companies operating in the European Union report that business conditions have deteriorated for the sixth year in a row, citing rising labour costs and political challenges, according to a survey, Reuters reports.

The survey, conducted for the China Chamber of Commerce to the EU, covered 200 Chinese firms and organisations. Respondents pointed to weaknesses in research, talent, digitalisation and market access as key obstacles to their operations.

Consultants Roland Berger, who carried out the survey, said Chinese companies gave the EU business environment an overall score of 61 points. This compared with 73 points in 2019 and was one point lower than in 2024.

Relations between Brussels and Beijing have been strained by the EU's de-risking strategy, which seeks to reduce reliance on China for critical minerals. Measures include tighter screening of investments and tariffs, notably on Chinese-built electric vehicles introduced in October last year.