A view of the Lujiazui area in Shanghai on August 27, 2025 Photo: VCG

UK businesses are increasingly optimistic about their outlook on the Chinese market, with higher expectations for full-year revenue in 2025 and highest sentiment about 2026 since before COVID-19, according to a survey released by the British Chambers of Commerce in China on Tuesday. 

The 2025-26 Sentiment Survey, the eighth annual business sentiment survey, published by the chamber reflects the views of over 300 British business operating across the Chinese mainland. 

"This year's findings indicate that while operating conditions remain difficult for most firms, several key sectors are expecting 2026 to be the strongest year for business since before the pandemic," according to a press release from the British Chambers of Commerce in China.

While noting a backdrop of geopolitical tensions, ongoing China-US trade negotiations, and a so-called "sluggish" Chinese economy, Chris Torrens, chair of the British Chamber of Commerce in China, said that "sentiment is at its highest since before COVID-19, with sectors such as healthcare, legal and financial services, creative industries and sport reporting markedly improved outlooks."

Wang Yiwei, director of the Center for European Studies at Renmin University of China, told the Global Times on Tuesday that the growing optimism among British businesses once again underscores foreign companies' recognition of China's predictable development environment and long-term opportunities.

China's GDP grew 5.2 percent year-on-year in the first three quarters of 2025, exceeding 101.5 trillion yuan ($14.3 trillion), according to data from the National Bureau of Statistics (NBS), showing that the country's economy has withstood pressure and achieved commendable development results, maintaining an overall stable and progressing development trend.

Notably, 38 percent of firms expecting a higher revenue in 2025 compared to 2024, a 5 percent increase. UK firms are more optimistic about 2026 than any year since the pandemic with improvements concentrated in sectors including legal, financial services and healthcare, according to the survey. 

Moreover, investment remains steady, with around one-third of firms planning to increase investment in 2025-26 and most maintaining existing levels, according to the chamber's survey.

Companies are adapting rather than divesting. Examples include firms expanding into lower-tier cities, pursuing collaboration in healthcare and life sciences, supporting Chinese companies going global and capitalizing on renewed demand for sport, entertainment and experience consumption, said the chamber.

While the survey claimed that almost 60 percent of firms reporting a more difficult environment, Wang said that China has continued to take efforts to improve its business environment, which have helped strengthen confidence among companies from various countries.

The survey also indicated that new opportunities are emerging as Chinese consumers transition from buying big-ticket or luxury items to experience spending. In the longer term, China's strategic priorities play well to British companies at the forefront of multiple sectors such as technology, healthcare and energy, said the survey.

In terms of geographical distribution, Beijing and Shanghai remained the two most popular destinations for British businesses reporting a physical presence, with 56 percent of respondents present in Beijing and 51 percent in Shanghai. This was followed by Guangzhou at 24 percent, Shenzhen at 20 percent, and Chengdu at 19 percent.

Despite ongoing global uncertainties, including rising protectionism and high inflation, China remains a key node in regional and global business strategies, Wang said. "For foreign companies, China is not only an important market for sales but also a vital hub for research and development, and supply chain collaboration... This strategic role is difficult to replace and continues to underpin business confidence in the long run," Wang said.

China-UK economic and trade ties have also seen a positive trend, according to official data. Currently, China is the UK's third-largest trading partner, with bilateral trade exceeding 110 billion pounds ($146.70 billion) for several consecutive years and a total stock of two-way investment surpassing 130 billion pounds, according to the Chinese Embassy in the UK.