Many European companies expect the regulatory environment in China to get worse over the next two years even though they are optimistic about growth prospects, according to the annual survey of The European Chamber of Commerce.
The Chamber said yesterday that businesses from Europe were looking to increase investments in China, but could yet decide to cut back their presence if the operating environment became more difficult.
The survey is the latest warning from the foreign business community in China that operating conditions and political limits have become more difficult since the global crisis. The showdown between the Beijing and Google has been one of the most high-profile examples of tensions.
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