As European companies 'business confidence in China fell to the lowest point of history, European merchants' optimism of the development prospects of the Guangdong -Hong Kong -Macao Greater Bay Area also decreased significantly.However, most companies still express their willingness to stay in South China to expand their business.

In response to European companies' business confidence in South China, the China EU Chamber of Commerce South China Branch announced a survey report on Monday (July 3) in Shenzhen.

The survey results show that 44%of the enterprises are optimistic about the development prospects of the Greater Bay Area, a 24%fell by 68%last year.Among them, companies that feel "a bit pessimistic" in the Greater Bay Area also increased by 4%.

The Guangdong -Hong Kong -Macao Greater Bay Area is a urban agglomeration consisting of nine cities in the Pearl River Delta and Hong Kong and Macau. It is one of the most open and economic vitality in China.However, 68%of European companies believe that they have not benefited from the three free trade areas (Shenzhen Qianhai, Guangzhou Nansha, Zhuhai Hengqin) in the Greater Bay Area.

Gianluca Giorgi, Vice Chairman of the EU Chamber of Commerce South China Branch, pointed out in a Lianhe Morning Post that European companies currently stationed in the Greater Bay Area are "a bit lost" because the official promoted it before and stated that it would be foreign personnel.Provide subsidies and business convenience.He said: "In fact, at least for our members, these commitments have not been fulfilled."

In order to attract high -end talents to the development of the Greater Bay Area, the Chinese government implemented personal income tax subsidy policies in the Greater Bay Area in 2019, and provided tax subsidies for overseas talents in mainland China working in the Greater Bay Area and Hong Kong, Macao and Taiwan.

Francine Hadjisotiriou, the general manager of the European Chamber of Commerce South China Branch, pointed out that the subsidy plan has been put on hold since 2021, and the official has not made clear instructions for recovery plans.

She said: "This has caused great uncertainty in attracting talent and human resources, making them also feel unbelved in the measures that the Greater Bay Area city may take in the future."

The Chinese EU Chamber of Commerce in late June this year said in the report of European enterprises in a business confidence in China 2023, in the face of high operating costs, shortage of talents, and deterioration of business environment, nearly two -thirds of the nearly three -thirdsEnterprises have said that business has been more difficult to do in the past year, and it is the highest value since the investigation.

11%of the interviewed companies said they had withdrawn from China or decided to do so.

European companies operating in South China are also facing the same challenge, but they are relatively positive for future development in South China.Survey data show that 97%of companies do not intend to move out of South China; 77%indicate that they are willing to continue to expand their business in the region.

As for how European companies in South China respond to rising costs and revenue decreased, 72%said they would improve the automation level of the industry; 78%said it would improve the company's operating efficiency.

Jinluka said that different from other parts of China, European companies' investment in South China is mainly manufacturing, and the migration of the industry is often more difficult than other fields.He said: "The sales market, production and supply chain, and employee training are all huge costs considered by enterprises."

Golden Luka research and judgment, more companies choose to increase investment in industrial automation when facing challenges and optimize the operating model, reflecting confidence in the local business environment.

He believes that as China gradually opened up after the epidemic, the supply chain returned to normal, and China -EU relations recovered, and the business of the enterprise would begin to improve.