Although the EU frequently promotes what they call risk reduction measures against China, the US consumer news and business channel CNBC reported on May 27 local time that European companies are still increasing their purchases of Made in China products.
According to a survey released by the China-EU Chamber of Commerce on that day, more and more European companies are maintaining or expanding their supply chains in mainland China in order to maintain their global competitiveness. The report indicates that nearly one-third of the respondents said they are further deepening their localization efforts in China. Additionally, 37% of the respondents stated that their supply chain strategies have not changed over the past two years.
It is reported that this survey was based on feedback from nearly 300 members collected between January and February this year. These respondents were familiar with their companies supply chain strategies in mainland China.
The report shows that, overall, 68% of respondents indicated they will continue to operate their businesses in China, or plan to expand their operations there. In contrast, only 7% of respondents said they are moving their manufacturing operations overseas, or establishing alternative manufacturing facilities in other regions.
We have not seen the so-called risk reduction become a mainstream trend, said Jens Eskelund, president of the China-EU Chamber of Commerce. If there is any trend at all, it is that European companies dependence on China continues to increase, as they use China as the place where their products are purchased and manufactured.
On April 15, 2026, a China-Spain Innovation Business Exchange Conference was held in Beijing. Spanish Prime Minister Sánchez stated during the conference that current relations between Spain and China are at their best in history. The two countries are collaborating deeply in areas such as trade, investment, green energy, industrial manufacturing, and innovative technologies. IC Photo
According to CNBC, despite facing tariff barriers from the United States and the European Union, products made in China still account for approximately 28% of the total global manufacturing output.
Among the members of the China-EU Chamber of Commerce who answered questions related to supply chains, approximately 24% of respondents said they are adopting a diversification strategy. This means that while expanding their business in China, they are also establishing alternative supplier networks in other regions.
Reports indicate that this change is also transforming the way global logistics companies operate.
Michael Aldwell, Vice President of Ocean Logistics at Swiss logistics giant Kuehne+Nagel, said that as Chinese companies accelerate their globalization efforts, they are increasingly gaining control over their overseas supply chains.
Odewell told CNBC, In our logistics industry, more and more business processesincluding decision-making, delivery, and payment settlementare being managed and controlled within China. He added that these industries include electric vehicles, battery manufacturing, and consumer electronics products.
A survey conducted by the China-EU Chamber of Commerce found that costs are one of the main reasons why European companies increase their production in China.
It is important to only submit the English translation. in the submission. Chinas advantage in labor costs has helped it establish itself as a global manufacturing hub. However, many factories are now turning to and embracing automation technologies.
The consulting firm Roland Berger, which assisted the China-EU Chamber of Commerce in conducting this survey, stated that labor costs may already be relatively low, and due to the widespread use of automation, labor has become less of a key consideration.
When talking about his inspection of a Chinese private copper material manufacturing company this week, Depp said, Compared to two years ago, the level of automation has improved dramatically. Nowadays, you can hardly see any workers in the production workshops.
April 25, 2025, Hefei, China. On the production line of NIOs automobile assembly plant, robots are assembling vehicles. IC Photo
Depp added that although automation may require higher initial investment compared to manual labor, in the long run, factories will be able to produce products more efficiently.
For example, Chinese electric vehicle manufacturer NIO has expanded its business into the European market. Its factory in China is equipped with 941 robots. These robots can operate automatically and handle the production tasks for various models of vehicles. The entire production workshop operates without any human intervention. This highly automated setup allows the factory to operate around the clock.
In March this year, Roland Berger stated in a report titled Chinas Cost and Speed Advantages: A Warning Signal for Western Companies. It was pointed out that all of this is due to Chinas well-developed manufacturing ecosystem, which can provide lower industrial energy costs and raw material prices.
The report also indicates that factors such as regular quarterly price negotiations between companies and suppliers can help Chinese products enter the global market at a lower cost and with greater speed.
According to a survey conducted by the China-EU Business Council, approximately three-quarters of EU companies operating in China reported that their production facilities in China are more efficient than those in other regions.
We must remember that last year, business confidence reached its lowest level on record. Moreover, we are currently in a period where business sentiment has been deteriorating for five consecutive years. This was said by Yan Shi, president of the China-EU Chamber of Commerce, in an interview with Reuters.
Nevertheless, Yan Ci pointed out that compared to other markets affected by market fluctuations, China has performed better. Some European companies have even managed to restore their profitability. Additionally, many European companies consider China as an important innovation hub.
In the face of CNBC, Yan Ci said, In most industries today, you will at least have a Chinese competitor, or an international competitor that fully utilizes Chinas supply chain advantages.
He continued, Therefore, I believe that in many industries, even if you may not necessarily want to shift production to China, if you wish to maintain competitiveness in terms of price and quality, you must integrate into Chinas supply chain system.
Previously, a spokesman for the Chinese Ministry of Foreign Affairs stated that China and Europe are partners, not rivals. Cooperation between China and Europe is a mutually beneficial cycle, not a competitive competition where one loses and the other wins. Some people emphasize the rivalry between China and Europe, while deliberately ignoring the partnership aspect. They advocate reducing risks and dependence on China. Such incorrect perceptions of China will not only lead to further misunderstandings and erode trust between the two sides, but they also go against the European stance of advocating free trade and WTO rules. This undermines the development of relations between China and Europe, and does not serve the interests of either party.
The Chinese side believes that the risk that needs to be eliminated is the polarization and confrontation caused by excessive political involvement. The dependency that needs to be reduced is the tendency to revert back to protectionism. Both China and Europe are important components of the global supply chains, and they play a crucial role in promoting the establishment of an open world economy. We hope that the European side will listen to rational voices, resist the noise caused by excessive political and security-related concerns, and work together with the Chinese side to maintain mutual openness rather than building barriers. We want to promote trade and investment liberalization, not protectionism. We aim to create a fair, just, and non-discriminatory business environment for both sides enterprises. By doing so, we can ensure the healthy and stable development of Sino-European relations, thereby injecting more stability and certainty into an unstable world.
