Survey shows 73% found doing business more difficult in 2024, despite supply chain onshoring trend

European business confidence in China has plummeted to record lows across multiple key metrics, according to a survey released , even as companies increasingly move their supply chains into the country.

The European Business in China Business Confidence Survey 2025, conducted by the European Union Chamber of Commerce in China with Roland Berger, found that 73 percent of respondents reported doing business in China became more difficult year-on-year in 2024 - a record high that marks a five-percentage point increase from the previous year.

The findings highlight the complex dynamics facing multinational corporations operating in the world's second-largest economy, where regulatory hurdles and geopolitical tensions are weighing on sentiment despite the competitive advantages of Chinese manufacturing.

A record 63 percent of respondents said they missed business opportunities in 2024 due to market access and regulatory barriers, representing a five percentage point increase from the previous year. Looking ahead, 44 percent expect to encounter more regulatory obstacles over the next five years.

The survey revealed that 71 percent of companies expect their China operations to be negatively affected by the country’s economic slowdown over the next two years, whilst 60 percent remain pessimistic about competitive pressures in their sectors.

Political considerations have also become more prominent, with 52 per cent  reporting that China's business environment became more politicised in 2024. The chamber noted this figure was likely to have increased since the survey was conducted before the US-China tariff increases were implemented in April 2025.

Despite the challenging environment, the survey uncovered a notable trend towards supply chain localisation within China. Some 26 percent of respondents reported they are partly or fully onshoring their supply chains into the country - a five percentage point increase year-on-year. By contrast, only 13 percent are offshoring or establishing alternative supply chains elsewhere.

Companies cited the need to strengthen supply chain resilience and leverage competitive Chinese manufacturing capabilities as the primary drivers behind this onshoring trend.

The confidence crisis has translated into record-low optimism about profitability and growth prospects. Only 12 percent of respondents expressed optimism about near- and medium-term profitability, whilst just 29 percent were positive about growth outlook.

A historic low of 38 percent reported plans to expand their China operations, compared with 36% who have no expansion plans. Meanwhile, 52 percent indicated cost-cutting measures are planned, matching last year's record high.

"Uncertainty resulting from escalating trade and geopolitical tensions, concerns about China's domestic economy and persistent producer price deflation weigh on the minds of both European and Chinese companies," said Jens Eskelund, president of the European Union Chamber of Commerce in China.

"Our key message to policymakers is: the disparity between supply growth and demand is eroding both profits and business confidence. Achieving a better balance, will not only benefit companies and make China a more attractive investment destination but may also lead to a reduction in trade tensions."

Denis Depoux, global managing director of Roland Berger, said the findings reflected broader shifts in the global economy rather than simple decline.

"A new, more fragmented globalisation is taking shape, while China's economy is stabilising with slower growth and greater competition – signalling transformation rather than decline," Depoux said.

"This evolving landscape presents fresh challenges for multinational companies, requiring highly localised China and Asia operations, fully integrated from R&D to customer service. MNCs must leverage regional supply chain hubs, partnerships with Chinese firms and local ecosystems, and innovative business models to successfully adapt and compete in this dynamic environment."

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Dunlop Tyres South Africa has appointed Marcia Noxolo Veronica Mayaba as its new commercial director, effective November 2025, as the company moves to sharpen its strategic execution in sales, retail, marketing and technical services.

Mayaba, one of South Africa’s most prominent automotive executives, brings decades of leadership experience and a resume marked by industry firsts including becoming the country’s first Black female CEO in automotive retail. Her previous roles span senior positions at Eqstra Fleet Management, Isuzu Motors South Africa, Lindsay Saker VW and Audi and Barloworld’s multi-brand operations.

The move forms part of Dunlop’s medium to long-term growth agenda as it competes for market share in a tightening industry landscape.

Lubin Ozoux, CEO of Dunlop Tyres South Africa said: “Marcia brings a distinctive  blend of empathy, strategic insight, and commercial acumen. Her passion for developing people, her deep understanding of the automotive ecosystem, and her commitment to ethical leadership align perfectly with Dunlop’s purpose-driven culture. We’re so excited to welcome her to the leadership team and look forward to the impact she will make in driving our business and dealer partnerships forward.”

Mayaba framed the appointment as both professional and personal, citing the automotive sector as a platform for economic mobility. “Dunlop embodies heritage, integrity and resilience, values that deeply resonate with me. My first meeting with Lubin and the Exco immediately felt like a fit a culture anchored in people, continuous improvement and long-term sustainability. Joining Dunlop is not just a career move; it’s a continuation of my purpose to build stronger, values-based ecosystems within the automotive landscape,” Mayaba said.

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Nokian Tyres gathered nearly 100 workshop representatives from five partner companies at the Hakka Ring, its year-round testing facility in Santa Cruz de la Zarza, Spain, to highlight its latest advances in all-season tyre technology and exchange views on market trends and industry challenges. The company said the test center, designed for all-weather performance evaluation, reflects its focus on safety, performance and sustainability throughout the year.

During the event, Iberia Country Manager Luis Miguel Cabanas presented brand updates, new product developments and future strategic direction. Partners were given the opportunity to drive the Seasonproof 2, the company’s newest all-season flagship tyre. Manufactured at Nokian Tyres’ zero carbon emissions factory in Romania, the Seasonproof 2 has been independently tested and verified by TUV SUD, Tyre Reviews and WhatTyre, and utilises up to 38 percent renewable, recyclable and ISCC PLUS–certified materials.

The tyre features the company’s latest innovations aimed at improving traction, precision and efficiency in varying conditions including technology designed to balance summer handling with winter grip, adaptive tread design for better performance in changing weather and a new compound optimised for durability, wet grip and fuel economy.

The event culminated with high-speed test runs on the 7-kilometre oval circuit with 40-degree banked corners, providing what the company described as an impressive demonstration of speed, control and overall driving performance. Nokian Tyres said the showcase strengthened relationships with key partners and reinforced its commitment to leading sustainable innovation in the all-season segment.

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Nokian Tyres gathered nearly 100 workshop representatives from five partner companies at the Hakka Ring, its year-round testing facility in Santa Cruz de la Zarza, Spain, to highlight its latest advances in all-season tyre technology and exchange views on market trends and industry challenges. The company said the test center, designed for all-weather performance evaluation, reflects its focus on safety, performance and sustainability throughout the year.

During the event, Iberia Country Manager Luis Miguel Cabanas presented brand updates, new product developments and future strategic direction. Partners were given the opportunity to drive the Seasonproof 2, the company’s newest all-season flagship tyre. Manufactured at Nokian Tyres’ zero carbon emissions factory in Romania, the Seasonproof 2 has been independently tested and verified by TUV SUD, Tyre Reviews and WhatTyre, and utilises up to 38 percent renewable, recyclable and ISCC PLUS–certified materials.

The tyre features the company’s latest innovations aimed at improving traction, precision and efficiency in varying conditions including technology designed to balance summer handling with winter grip, adaptive tread design for better performance in changing weather and a new compound optimised for durability, wet grip and fuel economy.

The event culminated with high-speed test runs on the 7-kilometre oval circuit with 40-degree banked corners, providing what the company described as an impressive demonstration of speed, control and overall driving performance. Nokian Tyres said the showcase strengthened relationships with key partners and reinforced its commitment to leading sustainable innovation in the all-season segment.

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Hankook Tire and Technology reported consolidated revenue of KRW 5.4127 trillion and operating profit of KRW 585.9 billion for the third quarter of 2025, the company said in a statement.

Tyre business sales rose 11.2 percent year-over-year to KRW 2.7070 trillion, while operating profit climbed 10.4 percent to KRW 519.2 billion, marking the company’s highest-ever quarterly performance.

Hankook attributed growth to stronger demand across global replacement and OE markets and a rising mix of high-inch tyres. Lower raw material and logistics costs helped cushion the impact of US automotive parts tariffs.

Hanon Systems, which has been fully consolidated into Hankook Tire’s results since the first quarter, generated KRW 2.7057 trillion in revenue, up 8.2 percent from a year earlier. Operating profit reached KRW 95.3 billion, an increase of 1.7 percent year-over-year and 48.2 percent quarter-over-quarter.

High-inch (18 inches and above) passenger car and light truck tyres accounted for 47.4 percent of segment sales in the quarter, up 2.6 percentage points from a year earlier. EV tyre sales represented 27 percent of the total, a 7-point increase year-over-year.

Hankook continued expanding OE fitments for premium EVs, citing supply agreements for the Porsche Macan, Xiaomi YU7, BMW iX, New i4 and New X3. The company now equips about 50 global automotive brands across more than 290 models.

Hankook’s EV-focused iON line-up and Ventus performance range won EV Tire of the Year and Performance Tire of the Year at the UK-based WhatTyre Awards, reinforcing its technology leadership.

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