European firms' 'best era' may be over

The survey estimated that due to market access and regulatory barriers, European Union Chamber member companies missed out on $29 billion in revenues in 2013, a figure equivalent to 15 percent of the EU's annual exports to China.

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The dominant perception of European companies in China is one of inequality, with most viewing their companies receiving unfavorable treatment compared with local ones.

For human resources departments in European companies, air pollution has become the top difficulty when they try to attract and retain talent.

"Yes, air pollution indeed is a problem. I've talked to many HRs, and they all complained of this; high-quality talents are hesitant when making the decision to come to China, especially those with a spouse and kids," Kerckhove said.

The surveyed companies said they most want to see reforms that are administrative in nature and related to increasing the rule of law.

These problems that European companies face are not new but have been exacerbated by the slowing economy and a sense that they are being entrenched, the chamber noted.

However, many businesses viewed the reforms laid out during the Third Plenum of the 18th Central Committee of the Communist Party of China to be positive.

Of the reforms outlined, two-thirds viewed administrative reform to be the most important. Forty-five percent said implementation of these reforms would be good for their companies in China, although only half are confident that the Chinese leadership will start meaningful implementation in the coming one to two years.