Virus Is ‘Wake Up Call’ on Supply Chains: EU Chamber of Commerce in China

The video discusses Europe's dependence on China, especially in pharmaceuticals, and the need for diversification. It highlights the impact of coronavirus on European companies in China, with significant disruptions in supply chains and decreased demand. The discussion includes government responses to support businesses, such as tax relief and logistical assistance. Financial challenges for companies, particularly SMEs, are addressed, along with potential solutions. The video concludes with considerations for future business strategies with China, emphasizing the need for diversified supply chains and market strategies.

What is a major risk for European companies that rely heavily on China?

• Lack of innovation

• Higher tariffs

• Single-source procurement

• Increased competition

What was one of the main challenges faced by European companies in China during the coronavirus outbreak?

• Political instability

• Lack of skilled labor

• Supply chain disruptions

• Increased taxes

What percentage of European companies reported a high impact on their business due to coronavirus?

• 85%

• 72%

• 59%

• 45%

What kind of support have companies been seeking from the Chinese government?

• Increased tariffs

• Tax relief and loan support

• More regulations

• Higher interest rates

What is a potential long-term strategy for companies dealing with supply chain issues in China?

• Relying solely on Chinese suppliers

• Diversifying sourcing locations

• Pulling out of China completely

• Increasing tariffs

What is a concern if Chinese economic growth drops below 5%?

• Higher inflation rates

• Improved supply chain efficiency

• Increased foreign investment

• Companies pulling out of China

What sector is expected to be crucial for China's recovery?

• Manufacturing

• Service sector

• Agriculture

• Mining