Most European business leaders expect relations between Europe and China to deteriorate in the coming years amid increasing challenges in the trade and geopolitical climate.

According to a survey by the European Industry Roundtable (ERT) and the Conference Board, 54% of executives expect relations between Europe and China to deteriorate over the next three years. On the other hand, only 7% believe that there will be an improvement, according to Bloomberg.

Key points of friction identified by European business leaders include the US-China relationship, risk reduction, and excess industrial capacity. These factors are seen as catalysts for growing tension between the European continent and China.

Despite the uncertain scenario in international relations, CEOs are showing moderate optimism regarding the business environment compared to six months ago, mainly due to improved global economic sentiment. However, this optimism is most evident in business prospects outside Europe.

“Leaders are optimistic about their companies’ investments and hiring outside Europe – but the outlook is less bright inside Europe,” Ilham Kadri, CEO of Belgian chemicals company Syensqo SA and Chairman of the Competitiveness Commission and ERT Innovation Foundation, said in a statement. .