Some 23% of European Firms Mull Shifting Out of China

The video discusses the challenges European companies face in China, including COVID-19 restrictions, economic slowdown, and geopolitical tensions. It highlights survey results showing increased revenues but also growing difficulties in doing business. Companies are considering shifting investments and localizing operations. The video also addresses supply chain resilience, the need for vaccination strategies, and ethical concerns in regions like Xinjiang.

What were the main challenges for businesses in China in 2021?

• Increased competition from local firms

• Stringent COVID-19 measures and a slowing economy

• Lack of skilled labor

• High taxation rates

What percentage of European companies are considering shifting investments away from China?

• 30%

• 10%

• 15%

• 23%

What strategy are companies adopting to manage supply chains in China?

• Outsourcing to third-party providers

• Onshoring and localizing supply chains

• Reducing production capacity

• Increasing imports from other countries

What is the EU Chamber's recommendation for China to handle future COVID-19 outbreaks?

• Focus on traditional medicine

• Increase mass testing

• Implement stricter lockdowns

• Start using mRNA vaccines and open borders

How are European companies affected by China's closer ties with Russia?

• They receive tax incentives

• They face increased uncertainty and reconsider their dependence on China

• They are unaffected by geopolitical changes

• They are encouraged to invest more in China

What is a major concern for companies operating in Xinjiang?

• Limited market access

• Competition from local businesses

• Human rights abuses and lack of transparency

• High operational costs

What makes doing business in China particularly challenging for European companies?

• Lack of technological infrastructure

• Limited access to capital

• Cultural differences

• Conflicting international and Chinese laws