European firms cooling on China

Rising labor costs, a slowing economy and lack of adherence to rule of law are making the China market less attractive for European companies, The Wall Street Journal reported, citing a survey by the EU Chamber of Commerce in China. While the world’s second-largest economy remains a hugely important market, many said they were scaling back investment plans. Only one in five ranked China as their top destination for new investments, down from a third in last year’s survey. The proportion planning to expand their activities in China over the near term dropped to 57% from 86% a year ago.