Théo Storella, a research assistant specializing in China affairs, and Alicia García-Herrero, a senior fellow at Bruegel, discuss the evolving strategies of European firms in China. They reveal insights from their research, highlighting four strategic approaches: doubling down, hedging, hibernating, and exiting. The conversation touches on the challenges posed by deflation and declining foreign investment, as well as the need for European companies to diversify their operations. They emphasize the importance of adapting to China's complex market while considering broader economic trends.
