China still attractive to European firms: European Chamber

BEIJING - China remains attractive to European companies, the European Union Chamber of Commerce in China (European Chamber) said, though rising wages and slower growth have led to worries about the emerging economy.

"Despite a challenging business environment, China still offers significant potential to European companies, including small and medium-sized enterprises," said the chamber's position paper released Tuesday.

Twenty-five percent of European firms have a research center in China, and 85 percent of those are likely to increase their presence in the near future, demonstrating China's importance to the long-term strategies of European companies, the report said.

Facing downward pressure and pains from an economic overhaul, China's economy expanded 7 percent in the first half of the year, the lowest reading since the 2008 global financial crisis.

The chamber said China should stick to bold reform pledges in a bid to tackle challenges from lower growth and ensure a successful rebalancing of the economy.

The European Chamber, founded in 2000, is an independent non-profit organization and has nearly 1,800 members in China.