A recent survey highlights growing pessimism among foreign CEOs regarding China’s economic prospects despite waves of stimulus from Beijing to boost its economy.
Conducted by the US-based think-tank, the Conference Board, sentiment among predominantly American and European executives slid to 49 from 56, marking the first shift towards pessimism since the Covid-19 pandemic. The survey was carried out from September 30 to October 28, post-enhancement of stimulus measures like interest rate cuts, and before Donald Trump’s electoral victory with his tariff threats on Chinese exports.
Despite Beijing’s efforts to stimulate growth, concerns about the economic climate in 2024 continue to loom large. Recently released data on December 16 reveals a slowing in retail sales growth for November, underscoring lingering weakness in consumer spending. As a response, Chinese policymakers have prioritized boosting consumption in 2025 for only the second time in a decade.
The surveyed CEOs pointed to the economic slowdown as a primary threat, citing pressures on profit margins amid increasingly price-sensitive consumers seeking deep discounts or postponing purchases. Over half of the respondents noted how local competitors have become more adept at navigating market changes, often delivering equivalent or superior products at significantly lowered costs.
