Despite the difficult global environment and uncertainties caused by the COVID-19 pandemic, European companies overall remain strongly committed to China.

A business survey – the European Business in China Business Confidence Survey 2020 (BCS) – by the European Chamber of Commerce in China said the country remains in the top three investment destinations for 63 percent of respondents.

Despite the difficult global environment and uncertainties caused by the COVID-19 pandemic, European companies overall remain strongly committed to China," said Denis Depoux, Global Managing Director of Roland Berger. "European companies are increasingly in China for China, both to meet growing domestic demand and to tap into its innovative ecosystem."

The survey was mostly done in February before the peak of the pandemic. That could mean better than reality survey results.

However, financial reporting for 2019 still showed significant downward trends. This is seen especially in the logistics, chemicals and petroleum, construction and automotive industries, which have the highest share of respondents reporting negative growth.

While fewer European firms – a four-percentage point decrease from 53 percent of 2019 – said doing business in China has become more difficult, Charlotte Roule, vice president of the European Chamber said European firms in China are calling for wider market reforms.

"China now has the strength and experience to become a leading force in a global recovery, but this brings with it a significant responsibility," said Roule.

About 40 percent of its members have difficulty in accessing financing from Chinese banks, though international banks filled this gap, the chamber's report said. But the COVID-19 has been exacerbating the European companies' financial difficulties, the report said.

As an expert in the energy sector, Roule said China's New Infrastructure plan could open a new window to electric mobility and renewable energy. She also cited figures showing that renewable energy, including wind and solar power, has proved to be more resilient than traditional energy during the pandemic.