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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Pirelli is all set for Formula 1's newest venue, the Madring, which hosts its first Spanish capital Grand Prix next weekend. The tyre supplier has nominated the C2 as Hard, the C3 as Medium and the C4 as Soft for the 5.416-kilometre circuit, which blends a street section threading between exhibition district buildings with a permanent layout and boasts 22 corners, among them the 550-metre Monumental with its 24 percent banking.

Only 200 metres separate the start-finish line from Turn 1, and the opening sector is extremely fast. The middle part of the lap brings several medium and low-speed corners, including the banked Turn 12, while the closing stretch serves up 90-degree turns reminiscent of Baku.

Pirelli's involvement stretches back three years, when circuit designers first shared details of the intended layout. Simulation tools enabled engineers to trace the paths cars would take and compute the forces tyres would face. Once construction concluded, Pirelli personnel travelled to Madrid to gauge the asphalt's macro and micro roughness, sharpening their simulations and preparing a technical document distributed to teams ahead of the event.

In energy terms, the track sits among the five most taxing on the calendar, generating lateral forces on par with Barcelona and Silverstone. The Monumental produces the year's highest vertical load thanks to both its banking and its length, and it also tests grip, with drivers likely to choose differing approaches depending on whether they favour setting up an attack into the next corner.

Because the asphalt is unusually smooth and offers modest grip, it has been cleaned with high-pressure water jets to strip away dust and oily deposits typical of fresh surfaces, a practice already employed at circuits such as Singapore. Elevation also distinguishes the layout: Turn 7 marks the highest point at roughly 700 metres above sea level, reached via an 8 percent gradient and 10-metre climb from Turn 6, while Turn 2 is the lowest, sitting 26 metres below.

With no testing possible before the weekend, teams will only finalise their programmes and tyre strategies after first practice, possibly reserving Hard sets for Sunday if softer rubber degrades sharply. Last year brought ambient highs of 29°C, though the circuit's altitude makes severe heat improbable. Madrid's region previously staged nine Spanish Grands Prix at Jarama from 1968 to 1981, where Mario Andretti won twice and Lotus took four wins. Across 55 Spanish Grands Prix at five venues, Michael Schumacher and Lewis Hamilton each have six victories, while Ferrari leads constructors with 12.

The Pirelli Design podium cap by Denis Dekovic carries a white crown and the seven stars of Ursa Major under the peak and is on sale through Pirelli's e-commerce platform.

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Nokian Tyres marks the 90th anniversary of its Hakkapeliitta winter tyre family, celebrating a legacy that began in 1936 with the introduction of the first Hakkapeliitta-branded tyre, the Lumi-Hakkapeliitta. This debut product, arriving just two years after the world’s first winter tyre, featured a transverse tread pattern and suction-pad-style grip, establishing itself as a breakthrough in winter mobility and the first winter tyre designed specifically for passenger cars.

The company commemorates this milestone with the launch of its newest winter product, the Nokian Tyres Hakkapeliitta 01, announced in March and available for sale at tyre shops this fall. The Hakkapeliitta 01 represents a significant step forward in the brand’s rich history, introducing On-Demand Grip technology that allows studs to enter ‘OFF’ and ‘ON’ modes in response to driving conditions.

Throughout the decades, Nokian Tyres expanded the Hakkapeliitta’s influence from the Nordic region to snowy surfaces worldwide. The Haka-Hakkapeliitta became one of the best-selling winter tyres of the 1950s and 1960s, featuring a dense pattern of protrusions effective on icy roads with packed snow, while the first studded model, Kometa-Hakkapeliitta, was introduced in the 1960s. The product family gained global recognition during the same period by dominating the Monte Carlo Rally, cementing its association with extreme weather performance.

Forty years ago, in 1986, the company opened the Ivalo Test Center, known as White Hell, in Finland, providing a diverse winter tyre testing environment with temperature variations of up to 40 degrees possible in a single week. From 2000 onward, all new Hakkapeliitta tyres have featured the Driving Safety Indicator, an easy-to-read number moulded into the tyre indicating remaining tread life. Innovations such as the square stud, Bear Claw technology, Double Stud technology and Arctic Grip Crystals have further advanced both studded and non-studded offerings.

Today, studded and non-studded Hakkapeliitta products equip passenger cars, SUVs, commercial vehicles, trucks, tractors and selected speciality equipment used in municipal maintenance and contracting. Models including the studded Hakkapeliitta 10 and non-studded Hakkapeliitta R5 have ranked atop test results, helping keep drivers safe in diverse winter weather.

The Hakkapeliitta 01 reduces road wear by up to 30 percent compared to its predecessor, the Hakkapeliitta 10, while improving ice grip by up to 10 percent and wet grip by up to 5 percent. Noise levels drop by as much as one decibel, making the new tyre a victory of safety and comfort. This marks the second time in the series’ history that Nokian Tyres has reset its numerical naming convention. Consumers can purchase the Hakkapeliitta 01 this fall at tyre shops across the Nordics, North America and Central Europe.

Paolo Pompei, President and CEO, Nokian Tyres, said, “The Hakkapeliitta product family is an iconic part of our heritage and continues to play a central role in our strategy. Achieving and maintaining leadership in the winter tyre market requires continuous innovation. The new Nokian Tyres Hakkapeliitta 01 is a clear demonstration of that commitment, combining our longstanding expertise with the latest advancements in safety and performance.”

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Hankook Tire has introduced the Winter i*cept evo 4, a new addition to its Alpine winter lineup. The studless tyre is designed for passenger cars and SUVs, targeting enhanced winter safety and fuel efficiency. It replaces the previous generation with a 5 percent improvement in snow grip, achieved through wider lateral grooves and semi-sipe technology. The next-generation model builds on Hankook's proven Alpine winter engineering, refining traction, braking, efficiency and tyre longevity even in the harshest winter conditions.

The tyre offers balanced grip compounds and hydroplaning resistance for wet braking, while an optimised curing process and balanced wear design extend mileage and fuel efficiency. A tread design focused on noise reduction provides a quieter, more comfortable ride by minimising road and impact noise caused by sudden braking and steering. All Hankook winter tyres carry the 3 Peak Mountain Snowflake rating for severe snow service standards.

The evo 4 joins a broader winter portfolio that includes the studless Winter icept iZ3 for passenger cars and iZ3 X for SUVs and crossovers. Studded options include the Winter i*Pike RS2 for passenger cars, including sedans, coupes, hatchback, and some smaller crossovers depending on tyre size, and the i*Pike X for SUVs, crossovers and light trucks. The new tyre is backed by the SureTire Plan with a 30,000-mile treadwear warranty, a 30-day free trial, a limited warranty and road hazard protection, subject to applicable terms and conditions.

Dealers can now order the Winter i*cept evo 4 in 37 SKUs and the SUV version in 45 SKUs. Consumer availability is expected later this fall.

K C Jensen, Vice President of PC/LT Sales, said, “Drivers need tyres that provide dependable control throughout the winter season. The Winter i*cept evo 4 combines stronger snow traction, enhanced wet braking and improved efficiency to help drivers navigate changing winter road conditions with confidence.”

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The AZuR network has welcomed North Rhine-Westphalia’s first circular economy strategy, viewing the explicit inclusion of used tyres as confirmation of its longstanding engagement. The strategy aims to move the state from linear value chains towards a circular economy and strengthen its position as a leading European location for such practices, with priority areas spanning circular construction, chemicals, technology, circular cities and a high-performing secondary raw materials sector.

Used tyres occupy a dedicated page within the strategy, granting political visibility to a material flow that already requires integrated approaches. These range from extending the service life of suitable tyres through repair and retreading to recovering secondary raw materials via mechanical and chemical recycling alongside complementary processes. The document identifies used tyres as a significant material flow in the state and highlights steel and rubber recovery as well as retreading.

The state government has signalled its intention to expand circular approaches to tyre reuse and recycling, expressly incorporating public procurement and the vehicle fleets of public companies. This reflects a core principle of the tyre circular economy, whereby suitable tyres should remain in use as long as possible, with repair, retreading and regrooving extending service life before mechanical and chemical recycling recover industrially reusable materials.

AZuR is paying particular attention to the political focus on retreading. The strategy notes that retreading is established for commercial vehicle tyres while passenger car retreading has declined, and the state government declares its intention to support retreading projects and further recycling processes. For the network, the inclusion of used tyres creates a starting point for linking the entire tyre circular economy with raw material security, secondary raw material markets, public procurement and industrial competitiveness.

AZuR maintains close contact with the relevant state ministries, contributing the experience and solutions of its network partners across the entire tyre value chain. It will continue this exchange and feed practical experience into implementation of the strategy, with the goal of keeping tyres and their contained raw materials in circulation for as long as economically viable.

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