China draws in Europe’s businesses despite alarm over competition
Financial Times • • world
Key Points:
- European manufacturers are increasing investments in Chinese factories despite European political concerns over industrial dependence on China, with trade surpluses reaching €305.8bn last year.
- Many European companies are expanding production in China to leverage lower costs, efficient supply chains, and local market access driven by China’s procurement rules and local content requirements.
- Sectors such as pharmaceuticals, machinery, and medical devices show significant shifts toward China, with around 25% of European Chamber of Commerce members moving more production there, double the number diversifying elsewhere.
- European firms are also deepening R&D activities in China, while some are cutting jobs in Europe, particularly in automotive, as they invest heavily in China’s growing electric vehicle market.
- The European Commission is planning
