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China Investment Appeal Waning Adds to Wen’s Challenge

China’s rising labor costs and a deteriorating regulatory environment are prompting almost a quarter of European Union companies to consider shifting investments to other countries, a survey showed.

Twenty-two percent of 557 respondents said they may move investment to developing economies including those in Southeast Asia and South America, where doing business is easier, according to a confidence survey conducted in February by the EU Chamber of Commerce in China and Roland Berger Strategy Consultants and released today in Beijing.