European companies remain optimistic about China's surging economic growth, but are concerned about uncertainties in the business environment, said the European Union Chamber of Commerce in China in a recent report. The report is based on a survey of more than 500 European companies in China.

The survey shows that the Chinese market has recovered well and European companies anticipate that this impressive performance will create opportunities for their own industries. Some 78 percent of respondents see a bright outlook in their sector over the next two years while 49 percent reported that China has become an even more important element of their global business strategies.

"The results clearly show that European companies are confident about China's growth perspective and that the Chinese market offers many opportunities," said Charles-Edouard Bouée, Asia President of Roland Berger Strategy Consultants and co-organizer of the survey.

But growth is only one side of the coin. "In the long run it is profitability that determines the success of a company," he said. "One factor impacting this sentiment is rising competition. As the Chinese market matures, so do domestic competitors, who are perceived to be a risk for future business by 58 percent of respondents."

European companies need to "raise their game" in China and continue to differentiate their products and services in this complex market, he added.