EU efforts to reduce reliance on China are backfiring, pushing firms deeper into Chinese supply chains, warns the EU Chamber of Commerce in China.
Europe's efforts to reduce dependence on China are instead driving companies deeper into Chinese supply chains, reported Hong Kong's South China Morning Post, citing the head of the European Union Chamber of Commerce in China.
Chamber president Jens Eskelund stated that Europe was becoming more dependent on China, not less. He noted that for European firms, staying competitive increasingly meant embedding themselves more deeply in supply chains that Brussels wanted them to avoid.
Eskelund cited a survey of nearly 300 chamber members conducted in January and February. It showed the highest-ever share of European companies onshoring more into China, with 56 percent of respondents increasing onshoring and only 7 percent boosting offshoring.
He explained that this dependence was driven by cost, with Chinese supply chains now so competitive that integrating into them was often the only way to produce the best products at the lowest cost.
