US EditionChina Export Controls Push EU Firms to Move Supply Chains
One-third of European Union firms plan to move supply chains from China due to export license delays and rising costs, the EU Chamber said in a flash survey.
- China's tightened export controls are pushing European firms to explore new supply-chain capacity outside China, with one in three member companies shifting sourcing due to Beijing's export-control regime.
- Beijing has tightened controls and at times threatened further rare-earth restrictions, using rare-earth exports as leverage in US-China trade tensions while the commerce ministry processes licences more slowly than the promised 45 days.
- Among roughly 130 firms surveyed, nearly 70% depend on Chinese components covered by controls, with 50% reporting export exposure, including BMW, Volkswagen, Nokia, and TotalEnergies, facing costs up to 20% of global revenue or over 250 million euros this year.
- Chamber president Jens Eskelund warned that export controls have increased uncertainty for European businesses and risked production slowdowns, while 56 out of 131 respondent firms said the controls would have no impact, and companies worried about intellectual-property risks.
- At the Busan summit, negotiators agreed to a pause and Alfredo Montufar-Helu said `These survey results are significant because they paint a picture that runs counter to the post-Busan summit optimism`; Washington and Beijing are still debating scope while the European Union pushes for inclusion.
21 Articles
21 Articles
For the European Chamber of Commerce, 20% more costs and damage to the supply chain
Due to China's intensified export controls, many European companies are trying to shift their supply chains to other countries. According to a survey conducted by the European Chamber of Commerce, one in three member companies is considering organizing their procurement of materials through other countries.
Chinese Export Controls Pushing EU Companies to Move Sourcing Elsewhere, Says Industry Body - The Thinking Conservative News
Beijing’s export controls are forcing businesses in Europe to move sourcing away from China according to survey. The post Chinese Export Controls Pushing EU Companies to Move Sourcing Elsewhere, Says Industry Body appeared first on The Thinking Conservative News.
Chinese Export Controls Pushing EU Companies to Move Sourcing Elsewhere, Says Industry Body
Beijing’s export controls are forcing businesses in Europe to move sourcing away from China, according to a survey conducted by the European Union Chamber of Commerce in China and published on Dec. 1. The lobby group published the results of a flash survey completed by 131 of its members, in which 75 companies (57 percent) said they expected to be, or had been, impacted by Chinese export controls. Of those, more than one in three (36 percent) sa…
European companies operating in China have been severely affected by China's controls on foreign sales, and many are working to break their dependence on China and diversify their supply chains, especially when it comes to rare raw materials, the European Union Chamber of Commerce in China announced today.
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