European companies are continuing to deepen their presence in China, with nearly seven in ten firms maintaining or expanding their supply chains despite global efforts to diversify, according to a new survey by the EU Chamber of Commerce.
The study, based on responses from almost 300 member companies, found that 68% are either maintaining or increasing their operations in mainland China. Around one-third said they are actively expanding their presence, while 37% reported no change in strategy over the past two years. Only a small minority, 7%, said they are shifting sourcing or production away from the country.
Jens Eskelund, President of the EU Chamber of Commerce in China, said the results show that reducing supply chain exposure to China is not becoming a dominant trend. He added that many firms remain increasingly reliant on the country as a key base for sourcing and manufacturing.
Industry experts say the way supply chains are managed is also evolving. Logistics executive Michael Aldwell pointed to a growing shift towards operations being coordinated directly from within China as domestic systems become more advanced.
“We see a rising amount of business in our industry that’s controlled, decided, shipped, and paid for here in China,” Aldwell said. “And we see that in the big emerging industries of China. So in automotive, in battery production, in technology, in consumer electronics goods.”
He noted that Chinese companies are increasingly taking a central role in managing international supply chains, with production and delivery processes handled end-to-end from within the country to global markets.
Efficiency gains appear to be a major driver behind this trend. Chinese manufacturers have invested heavily in automation, reducing dependence on labour while increasing speed and output. The report highlighted the example of electric vehicle maker Nio, whose factory operates hundreds of robots capable of continuous production without workers on the floor.
Around three-quarters of European firms surveyed said their operations in China are more efficient than elsewhere. Lower energy costs and competitive prices for raw materials were also cited as factors reinforcing the country’s manufacturing advantage.
Despite ongoing discussions in Europe about diversification and risk reduction, the findings suggest that many companies continue to rely on China’s industrial scale, speed and integrated supply chain ecosystem, balancing geopolitical concerns with commercial realities.
Iran has said that reaching an agreement with the U.S. to end the war does not mean Tehran will overlook what it describes as war crimes committed aga...
A senior U.S. official said on Monday that the memorandum of understanding linked to the U.S.-Iran agreement had been signed by President Donald Trump...
Pakistan's political leadership on Monday welcomed a breakthrough agreement between the U.S. and Iran aimed at ending more than three months of confli...
Uzbekistan and five partner countries have signed a protocol to further develop the CASCA+ railway corridor, a growing transport route linking Central...
The UK has become the latest country to annouce a social media ban for children under 16. British Prime Minister Keir Starmer made the announcement on...
In the runup to the G7 summit, hosted by France in Évian-les-Bains on Monday, 15 June, China has addressed global economic balances in a videoconference hosted by French President Emmanuel Macron. It is a rarity for Beijing to engage directly with the group.
Romania's centrist President Nicușor Dan on Sunday designated Adrian Veștea, a member of the liberal party, as prime minister, after independent candidate Eugen Tomac withdrew.
Georgia and the European Union have held their first working-level talks in Brussels following the EU's decision to suspend visa-free travel for holders of Georgian diplomatic, service and official passports.
A sweeping overhaul of immigration and asylum policy has come into force across the European Union, marking the bloc’s most significant collective response to migration challenges in a decade.
Details of a reported draft memorandum of understanding between the United States and Iran offer the clearest picture yet of how both sides plan to end months of conflict and move towards a longer-term settlement.
The U.S. and Iran say they have reached a deal to end their conflict, with an immediate ceasefire and reopening of the Strait of Hormuz after the lifting of the U.S. naval blockade. Talks will continue over the next 60 days to finalise the agreement
A senior U.S. official said on Monday that the memorandum of understanding linked to the U.S.-Iran agreement had been signed by President Donald Trump, Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf.
Israeli Prime Minister Benjamin Netanyahu has told U.S. President Donald Trump that Israel does not consider itself bound by a Lebanon-related provision in an emerging agreement with Iran, according to Israeli officials.
Switzerland on Sunday rejected a referendum proposal to cap its population at 10 million, a projection showed, as voters prioritised economic stability and the country's ties with the European Union over immigration concerns.
At the start of 2026, something unusual happened in China's car market. BYD, the company that had spent years at the top of the domestic sales charts, was knocked off its perch by a rival.
Apple has unveiled a long-awaited upgrade to Siri, aiming to close the gap with technology rivals and emerging artificial intelligence firms in an increasingly competitive market.
ChatGPT maker OpenAI has confidentially filed for a U.S. initial public offering (IPO), the company said on Monday, joining rival Anthropic in a race to the stock market as investors seek exposure to the artificial intelligence boom.
Chinese carmakers are rapidly reshaping the global automotive market, with record exports, soaring electric vehicle sales and growing investments overseas putting pressure on established European, Japanese and U.S. rivals.
The International Labour Organization (ILO) has begun its latest round of negotiations on creating the first binding global standards for platform-based work, covering services such as ride-hailing, food delivery and other app-based work.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment