European companies operating in the Chinese mainland are facing growing operational hurdles. According to the Business Confidence Survey 2025 by the European Union Chamber of Commerce in China and consultancy Roland Berger, 73% of firms reported increased difficulties in 2024.
Facing intensifying market competition, regulatory complexities, and various uncertainties, these firms are not backing down. In fact, 26% have boosted their onshore supply chains—a 5 percentage point increase from last year—highlighting a dual reality: a tougher business climate paired with enduring advantages in sourcing high-quality components.
Denis Depoux, global managing director at Roland Berger, remarked, "the Chinese mainland's economy is stabilizing with slower growth and greater competition, signaling transformation rather than decline." Similarly, Jens Eskelund, president of the European Union Chamber of Commerce in China, emphasized that the one place to get better components at a lower price is right here on the Chinese mainland.
Recent policy shifts further aim to reassure investors. The Private Economy Promotion Law, enacted on May 20, establishes legal safeguards for fair competition, better financing access, and support for innovation. Additionally, an April 18 meeting of the State Council led to strengthened financial measures, with the People's Bank of China implementing rate cuts to sustain liquidity.
In today’s dynamic global landscape, European firms are adapting by leveraging the robust supply chain ecosystem of the Chinese mainland, proving that challenges can be met with smart strategy and a forward-thinking mindset. 🚀
Reference(s):
European firms face China challenges but boost local supply chains
cgtn.com
