On 11 June, the Consulate General of Sweden together with other Team Sweden members in Shanghai - Business Sweden and the Swedish Chamber of Commerce – launched the 2021 Business Climate Survey for Swedish Companies in China, a report by Team Sweden China.
The COVID pandemic has affected global value chains, cost of international trade has increased, and predictability in trade flows has diminished. But economies are beginning to bounce back, with global growth projected to reach above 5 % in 2021. Resilience in the Swedish economy is strong, and recovery will gather strength in the second half of 2021 as COVID recedes and restrictions are being gradually lifted. The current importance of the Chinese market is clear with an important potential for foreign companies.
Respondents to the Swedish survey indicate that they perceive an improved business climate in China compared to 2020, even if at the same time they are looking ahead with some more caution than before. Only 39% of respondents expect further improvements over the next 3 years, against as many as 58% last year. But according to the survey, all in all, COVID-19 has affected Swedish companies in China less than expected, and not even half of respondents noted negative impacts on their sales.
Swedish companies in China maintain a positive view of economic developments going forward.
57% of respondents plan to increase their investment in China over the next 12 months, primarily focused on improving their production capacity.
However, and for the second year in a row, access to skilled labor remains the biggest challenge for respondents, at the same time as the number of their expatriate staff in China has continued to decline.
