April 14, 2026, 08:56April 14, 2026, 08:56
Despite calls for risk reduction, European companies continue to rely on China, according to the EU Chamber of Commerce. “Despite all the discussions, we don’t really see that Europe is becoming less dependent on China,” said Chamber President Jens Eskelund in Beijing.
Jens Eskelund.Image: keystone
Last year, twice as many companies, 26 percent, stated in a survey that they were relocating their supply chains to China as companies that wanted to move them away from there or establish a second base abroad.
This trend is clearly continuing, said the president of the interest group of more than 1,600 European member companies in China. According to the Dane, many companies are not necessarily enthusiastic about being even more exposed to China because of the uncertainties. It is more of a “survival mechanism”.
Many EU companies have at least one Chinese competitor. If you want to win in the market, you need a better product at a lower price, said Eskelund. This is only possible if Chinese supply chains are used, he explained.
Risk factor export controls
But the dependencies created problems that now generated political reactions, said Eskelund. Beijing’s export controls last year on seven rare earths and the magnets made from them were particularly drastic. China is the world leader in the production of these important raw materials, which are found in engines, smartphones and many everyday devices.
In the fall, Beijing threatened export controls against additional rare earths. However, these were postponed until November this year after US President Donald Trump and Chinese leader Xi Jinping agreed to a pause in their ongoing trade dispute in South Korea.
Chamber warns of damage to EU
To the chamber’s surprise, in a survey earlier this year, almost a third of members said they were affected by export controls. Considering the few controlled substances, the amount of products affected is “unbelievable,” it was said. “I don’t think anyone really knows whether Europe could even make toothpaste without China,” said Eskelund.
A new report from the Chamber highlights that some companies are concerned that China will be able to capture companies’ dependencies beyond the required details in export license applications. “The EU’s dependence on China is great enough that the country – through its export control system – could now cause unprecedented damage to the European economy if it decides to do so,” warns the chamber. (hkl/sda/dpa)