Hey everyone! Here’s a quick update from the business frontier in the Chinese mainland 🚀. According to the Business Confidence Survey 2025 by the European Union Chamber of Commerce in China together with Roland Berger, a whopping 73% of European firms report that operating here has become tougher in 2024. Companies are facing rising market competition, more complex regulations, and geopolitical uncertainties.
But there’s an interesting twist—about 26% of these companies are boosting their onshore supply chains, up by 5 percentage points year-on-year. This shows that while the business environment is evolving, many firms still count on the unrivaled advantage of sourcing high-quality components at competitive prices right here in the Chinese mainland.
Experts like Denis Depoux from Roland Berger noted that the Chinese mainland’s economy is stabilizing with slower growth and heightened competition, which signals transformation rather than decline. Multinationals are now localizing modules of their operations— from research and development to customer service—to meet new challenges head-on.
Adding to this dynamic landscape, recent policy shifts like the Private Economy Promotion Law are set to reassure investors by ensuring fair competition and boosting access to financing and innovation support. Moreover, initiatives from the State Council and rate cuts by the People's Bank of China are helping maintain healthy liquidity levels.
In short, despite a tougher operational climate, European firms are adapting smartly by strengthening their local supply chains. It’s a clear sign that even in challenging times, innovation and strategic investments keep the momentum going!
Reference(s):
European firms face China challenges but boost local supply chains
cgtn.com
