On May 27, the Chamber of Commerce and the European Union Industries in China published surveys with nearly 300 member companies. In it, nearly one third said that the production was increasing in China. 37% claimed to have not changed the supply sequence strategy over the past 2 years.
68% responded that it would stay or expand production in China. Only 7% said it would move the factory to another country or establish a manufacturing facility elsewhere.
"We didn't notice the tendency to reduce the risk here. Data has even shown that European companies are increasingly dependent on China, to have supply and where production for their production", the Chairman of the Chamber of Commerce and Industrial of the European Union at China Jens Eskelund said.
- The worker in Volkswagen's factory at Anhwa (Chinese) February 2026. Image:Reuters*
China currently accounts for about 28% of global production goods, despite import tax policies from the US and the European Union (EU). EU is said to be increasing surveillance of China's commercial activities.
The cost was one of the main reasons why European companies increased their production in China, surveying said. Low labour costs have made the country a global manufacturing center. However, when factories face the lack of labor, many businesses are rapidly promoting automation.
In March, Roland Berger reported as "The Chinese Cost and Speed: Retrieving Bell for Western Company". In it, they observed that China's domestic manufacturing ecosystem had the advantage of accessing industrial energy prices and lower raw materials. Reports have also stated that the exchange of precious goods with providers and selective subsidies from the government often helps Chinese products access the global market earlier and at much lower cost.
About three quarter EU businesses in China say their production facilities in one country are more efficient than elsewhere. "Most industry currently has at least one Chinese rival, or an international opponent who is taking advantage of China's supply chain. So I think in many disciplines, if you want to compete for price and quality, business needs to be part of the Chinese supply chain", Eskelund said.
State Thu * (in CNC)