Business Confidence Survey for French companies in China - Spring 2025
Navigating Uncertainty: Challenges and Opportunities for French Businesses in China
With almost 2100 subsidiaries employing some 307400 people, France is the leading European investor in China by the number of companies. With its 1,702 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 February 26 and March 11, 2025, on their activity in light of China’s new stimulus policies. 322 companies responded to the survey.
Key Findings of the Survey:
01 Economic Outlook: The business climate for French companies in China in 2025 presents mixed views. 34.1% of respondents assessed an improvement in the business environment compared with last year. In the short term (2025), 35.3% expect stability, with 41.3% anticipating growth (moderate or high). Over the next three years, 65.3% expect growth, and even 72.2% are optimistic for the next ten years.
02 Policy Impact: French companies in China are facing challenges related to local policy but we can see some improvements as only 28.2% of respondents feel that they are treated worse than local firms. Local private firms being considered as the primary competitors by 62% of companies. 73.7% see market competition as their top threat while 68.6% of respondents still cite pricing and cost efficiency as their greatest weakness.
03 Profit Trends: French companies in China are cautiously optimistic about their financial performance. In 2024: 32.9% saw a slight increase in their turnover, but 36.6% saw a decrease, with an overall of 55.1% declaring a net profit. In 2025, 53.9% of respondents expect an increase in their turnover while 25.1% forecast stability.
04 Strategic Investments: Strategic investment decisions reveal a shift in priorities. The Chinese market, once a top destination for investment, is now on pause for global investment plans. More than 55% of respondents will keep their investments stable. Only 25% of companies still prioritize China highly for future investments and with 14% considering decreasing investments. It is interesting to note that a large majority (61%) of companies with a R&D activities (37% of the respondents) consider expanding these activities.
05 ESG Priority and Implementation: ESG remains an important focus for French companies in China. 32.3% of companies highly prioritize environmental, social, and governance (ESG) issues in their Chinese operations, though 36% treat it with lower priority or disregard it entirely. The top ESG initiatives being implemented include carbon footprint reduction (65.9%), followed by diversity and inclusion (46.7%) and ethical supply chain practices (37.1%). Despite growing attention to ESG, 38% of companies still see it as less important in China compared to other markets.
The business outlook for French companies in China in 2025 is mixed, with many anticipating both challenges and modest growth. Despite some policy improvements, companies continue to face issues related to competition, pricing, and cost efficiency. Strategic investments are shifting away from China, while ESG concerns remain important, though their priority varies across companies.
Read the full report here.
