economy
European companies double down on China manufacturing despite EU de-risking push
Low manufacturing costs in China are keeping many European businesses' supply chains in the country despite pressure in the EU to reduce overseas reliance.
TL;DR
- 68% of surveyed European companies in China are staying or expanding operations.
- Only 7% are moving factory sourcing outside of China.
- Cost remains a primary reason for maintaining supply chains in China.
- Automation is rapidly advancing in Chinese factories, making labor costs less relevant.
- Chinese companies are increasingly controlling overseas supply chains.
- 75% of EU companies in China report their facilities there are more efficient than operations elsewhere.