FOREIGN firms are reaching a "tipping point" on investing in China as market access barriers mount, reports London's Financial Times.

Add to that, low growth and fierce competition cloud the outlook, according to the EU Chamber of Commerce in China president Jens Eskelund's annual position paper.

"For some companies, a tipping point has been met," said Mr Eskelund. "Companies are beginning to conclude that, considering supply chain risks, considering anticipated lower profits in China, considering the continued barriers?.?.?.?that maybe other markets are becoming more competitive, more attractive."

European companies complain that operating in China is becoming tougher because of a growing web of ill-defined data, cyber security and anti-espionage laws while a weak domestic economy means lower profits.