A key measure of CEO confidence in China signaled pessimism for the first time since the pandemic even after the nation unleashed a raft of stimulus measures.
Sentiment among the country heads of mostly American and European companies dropped to 49, down from 56 in the previous six months, according to a survey by the Conference Board, a think tank headquartered in the US. A reading above 50 signals optimism, and a figure below that pessimism.
The survey was carried out between Sept. 30 and Oct. 28, after Beijing announced measures including interest rate cuts to support growth and before the election of Donald Trump, who has threatened to slap tariffs on Chinese goods once in office.
The survey underscores the lingering worries about China’s economy this year. On Monday, new data showed retail sales growth unexpectedly weakened in November, the latest reminder of a weak consumer sector. Chinese policymakers recently elevated boosting consumption as the top priority for economic efforts in 2025, only the second time they’ve done that in at least a decade.
On Tuesday, China started allowing foreign visitors in transit to enter the country for as long as 10 days without a visa, further easing its travel policy with an eye on supporting economic activity.
The CEOs in the survey cited the economic slowdown as the biggest risk facing their business and said their bottom line has been squeezed as customers become more price sensitive and seek steep discounts or hold off on purchases.
Over half of the executives said local competitors are more agile in dealing with these market changes, often offering comparable or superior products at much lower prices.
“In the longer-term, CEOs are more optimistic but there’s no doubt that multinationals are having to make tough decisions to compete in the current climate,” said Alfredo Montufar-Helu, head of the China Center at The Conference Board.
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