The Chamber

2026 Business Confidence Survey for French Compagnies in China, Yearly

Navigating Structural Headwinds: Resilience and Long-Term Commitment of French Companies in China

With almost 2,100 subsidiaries employing some 307,400 people, France is the leading European investor in China by the number of companies. With its 1,729 members, the French Chamber of Commerce and Industry in China (CCI FRANCE CHINE) has been defending the interests of French companies since 1992.

Following up on the series of surveys launched from April 2022, CCI FRANCE CHINE questioned its members between January 7 to January 28, 2026, on their activity in light of China’s new stimulus policies. 285 companies responded to the survey.

• Economic Outlook: The 2026 survey highlights a more challenging perception of the business climate, with 46.3% of respondents assessing it as deteriorated, compared with 34.2% in 2025. This negative perception is largely driven by structural factors, including regulatory complexity, intensified local competition, and ongoing global geopolitical tensions.

Despite these short-term headwinds, confidence improves significantly as the time horizon extends. While 54% of companies see growth potential in the short term, 72% anticipate growth over the next three years, and 78% remain optimistic over the next decade, reflecting a strong underlying confidence in China’s long-term fundamentals.

• China as a Strategic Domestic Market: The survey confirms a structural shift in business positioning: China is increasingly viewed as a core domestic market rather than an export platform. Nearly 74% of French companies operating in China primarily target the local market. Although for 46% of respondents China still represents less than 10% of global turnover, a growing share of companies report deeper market integration, with 36.5% experiencing an increase in the proportion of revenue generated in China.
• Financial Performance and Outlook: Despite a more difficult business environment, financial performance remains resilient. In 2025, 67% of companies reported stable or growing turnover, and 64% recorded a positive financial result. Expectations for 2026 are cautiously optimistic, with 60% of respondents anticipating revenue growth and only 15% forecasting a decline. Margin pressure remains present, yet overall profitability indicators point to a solid economic base.
• Investment Strategy and R&D Commitment: Investment intentions underscore a durable commitment to China. Over the next three years, 86.7% of companies plan to maintain or increase their investments, while only a small minority envisage a market exit. China remains among the Top 3 investment priorities for nearly 40% of respondents. 

R&D stands out as a key long-term pillar: 46% of companies already conduct R&D activities in China, and 65% of them intend to further expand their local R&D footprint, reflecting the need for localized innovation and deeper integration into Chinese innovation ecosystems. 

• ESG Priority and Strategic Challenges: ESG considerations continue to gain importance, with more than half of respondents assigning ESG a high or moderate priority, although a majority still consider ESG less critical in China than in other markets. 

At the same time, local competition and geopolitical tensions have emerged as structural challenges, no longer perceived as temporary but as defining elements of the operating environment. 

The 2026 survey highlights a structural paradox: while the business environment in China is perceived as more complex and competitive, French companies continue to view China as a strategic, profitable,and innovation-driven market. Success increasingly depends on more localized strategies, sharper execution, and selective investment choices, underscoring a transition from expansion-driven growth to consolidation and long-term positioning

Click on the link to see the full report  : https://shorturl.at/TQB4R