A new survey released by the European Union Chamber of Commerce in China shows that one-third of surveyed EU chamber of commerce member companies are considering shifting their sourcing out of China and are seeking new supply chain arrangements. The shift is primarily motivated by uncertainty around the U.S.-China trade war as well as tightening Chinese export controls.
The survey, conducted from November 6 to 24, involved 131 member companies of the EU chamber of commerce. The survey revealed that 32 percent of respondents planned to shift their procurement outside of China due to Beijing’s export controls; and 39 percent indicated that the Ministry of Commerce of China was processing export licenses slower than the promised 45 days.
The survey also showed that nearly 70 percent of respondents indicated their overseas production facilities rely on Chinese components affected by export controls; 50 percent indicated that the products of their suppliers or customers have already been or will soon be included in the scope of controls.
In October of this year, China announced stricter export controls on rare earths, shocking global markets and exacerbating European companies’ concerns about further disruptions to supply chains. Of the 131 companies surveyed, 75 indicated that they had been affected by the relevant controls. For now, the U.S. and China have not yet formally signed an agreement, and the EU is also trying to include itself in the relevant arrangements.
Source: Lianhe Zaobao, December 1, 2025
https://www.zaobao.com.sg/news/china/story20251201-7899734