European companies most pessimistic on China

According to a survey by European Chambers of Commerce pessimism are highest among foreign investors in China.

Chinese slowdown has gathered pace in 2015, not seen in prior years.

• Latest report showed imports dropped more than 17% in May from a year ago.
• Today's report showed retail sales grew by 10.1% in May from a year ago.
• Industrial production grew by 6.1% in May from a year ago.
• Urban investment continued its drop, grew at 11.4% in May, down from 12% in April.

Survey covered 541 European businesses.

• 40 % of the survey correspondents said that they are considering heavy cost cutting this year and 67% of them are considering reduction of costs by cutting employment.

Slowdown is only one part, why companies are considering job cuts. Tougher regulatory environment is also contributing to their decision.

• Almost 60% of the companies surveyed said that tougher internet laws such as their inability to access certain websites, such as Google, affecting productivity and research and development.

While some laws are toughened such as anti-monopoly, loose intellectual property laws are refraining companies from making R&D investments in China.