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European firms in China overly focused on managing risks instead of increasing market share, which hurts innovation and increases costs for consumers, European business group warns (www.reuters.com)

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The European Chamber of Commerce said in its de-risking report that companies were "skewed disproportionately towards risk management and building resilience" because of the COVID pandemic, global economic slowdown, Ukraine war and U.S.-China geopolitical competition.

"China has a rational self-interest in ensuring that there is a workable commercial relationship with Europe going forward. And that, frankly, is put at risk right now," Jens Eskelund, president of the European Chamber of Commerce in China, said.

"I think there is a risk that Europe feels compelled to react in more protective ways."

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