European firms are feeling the pinch in the Chinese mainland but aren't backing off. New data from the Business Confidence Survey 2025, published by the European Union Chamber of Commerce in China and Roland Berger, shows that while 73% of companies say operations got tougher in 2024, 26% are deepening onshore supply chainsâa 5-point jump from last year.
Respondents flagged intensifying market competition, a maze of regulations, and geopolitical uncertainty as top hurdles. Yet the Chinese mainlandâs supply chain prowess remains unrivalled. Jens Eskelund, president of the European Union Chamber of Commerce in China, notes that âno other place in the world delivers high-quality components at such competitive costs.â
Denis Depoux, global managing director of Roland Berger, says the data underscores transformation, not decline: âThe Chinese mainlandâs economy is stabilizing with slower growth and greater competition. Multinationals must localizeâfrom R&D to customer supportâto stay ahead.â
Recent policy moves aim to steady foreign investors. The Private Economy Promotion Law, effective May 20, guarantees fair competition, financing access, and innovation support. At the April 18 meeting, the State Council pledged stronger financial backing, prompting the Peopleâs Bank of China to cut rates and boost liquidity.
As European players navigate new challenges, their strategy is clear: double down locally. The ongoing shift signals a strategic recalibration, blending caution with opportunity in one of the worldâs most dynamic markets.
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European firms face China challenges but boost local supply chains
cgtn.com
