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."

Comments (0)

ADD COMMENT

Link Copied!

Webfleet, Bridgestone’s advanced fleet management solution, has closed a strategic agreement with Volkswagen Group Info Services AG. The collaboration leverages OEM.connect, the company’s original-equipment telematics programme, to erase the need for physical device installations across Volkswagen Group brands. Operators running Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, Škoda, Seat, Cupra or Audi models can now channel real-time machine data straight into the Webfleet ecosystem.

Once a compatible vehicle’s identification number is registered, the system activates full-service functionality in under an hour. This digital-first approach accelerates fleet onboarding while unlocking analytics that drive cost reduction, operational refinement and eco-friendly driving habits. Crucially, the interface does not discriminate by brand mix, granting unified oversight of diverse fleets through a single dashboard or companion application, regardless of whether units come from one marque or several manufacturers.

Among the practical tools now available to European customers are fuel-level surveillance, electric-battery tracking for range assurance, granular performance dashboards and early-warning mechanical alerts to curb unplanned stoppages. Every feature is accessible across the continent, giving mixed and single-brand fleets equal command over their daily logistics without legacy hardware barriers.

Jan-Maarten de Vries, President – Fleet Management Solutions, Bridgestone, said, “We always aim to make connecting vehicles to Webfleet as quick and easy as possible. Adding six Volkswagen Group brands to OEM.connect serves that goal perfectly. Fleet operators get immediate access to valuable data that helps them optimise their operations. This collaboration represents an important step in expanding our OEM.connect ecosystem, enabling fleets to adopt connected services faster and with less complexity.”

Lasse Schmidt van Hülst, Lead Sales & Key Account Management, Volkswagen Group Info Services AG, said, “Combining our vehicle data with Webfleet’s advanced fleet solutions supports the continued development of connected fleet services across Europe. By making vehicle data available through trusted partners, we are helping fleet operators improve performance while ensuring secure and compliant data use.”

Comments (0)

ADD COMMENT

Link Copied!

Pirelli has finalised its gravel tyre lineup with the debut of the CINTURATO Gravel RH and CINTURATO Gravel RM, manufactured at the Milan-Bollate plant using FSC-certified natural rubber. These additions arrive as gravel cycling evolves towards faster racing, rougher courses and heightened performance expectations from riders. The ‘R’ designation signals a race-focused philosophy, while the ‘H’ and ‘M’ suffixes align with Pirelli's existing off-road naming system, indicating suitability for hard-packed or mixed terrain, respectively.

The company leveraged its motorsport pedigree and cross-country mountain biking expertise to engineer both tyres, which are positioned within the High-Performance Line. This premium category represents the pinnacle of Pirelli's gravel technology, with all design and production occurring in Italy. The HP-Line distinguishes itself through advanced materials and manufacturing methods, setting a new benchmark for the brand's gravel offerings.

For hard-packed surfaces where speed and efficiency reign supreme, the CINTURATO Gravel RH employs a tread design featuring a smooth centre section to maximise rolling efficiency on tarmac and compact gravel, while aggressive shoulder knobs deliver precise cornering grip. Its 120 TPI ProWALL casing, borrowed from XC racing, enhances ride feel and puncture defence. Internal testing has recorded a 17 percent decrease in rolling resistance compared to the previous Performance Line tyre, establishing it as one of the fastest options in Pirelli's gravel range.

Conversely, the CINTURATO Gravel RM caters to riders navigating a mixture of fast sections and technical terrain, offering a balanced compromise between traction and rolling economy. Its familiar tread pattern, previously known as RC, ensures cornering stability and dependable braking and acceleration on loose surfaces. With the same robust casing and sizes extending up to 700 x 55 mm, the RM serves as a singular solution for varied gravel races, maintaining a smooth and controlled ride. Pirelli's tests indicate a 20 percent improvement in rolling resistance over the Performance Line counterpart.

Both tyres incorporate the newly developed SmartEVO GR compound, tailored specifically for high-performance gravel applications. This formulation aims to reconcile low rolling resistance with trustworthy grip across wet and dry conditions, enabling riders to balance speed and control effectively. The complete range now spans from pure racing scenarios to adventure riding, covering everything from high-speed hardpack routes to muddy and technically demanding trails.

The portfolio is divided into the HP-Line for uncompromising performance and the P-Line, which utilises 60 TPI casings and SpeedGRIP compound for versatile all-round use. The CINTURATO Gravel RH and RM are currently available online and at select retailers, with the HP-Line offered in four sidewall finishes including a new Team Edition with yellow Racing labels. Sizes range from 700 x 40 mm to 700 x 55 mm, representing one of the most extensive size selections in the gravel market.

Comments (0)

ADD COMMENT

Link Copied!

Sri Trang Agro-Industry Public Company Limited (STA) has been honoured with the ‘Highest Revenue Business – Southern Region’ award at the Prachachat Business Awards 2026. The recognition, presented during a ceremony at Paragon Hall in Bangkok on 28 May 2026, is based on performance metrics and tax contributions evaluated by Prachachat Business News, the Department of Business Development and Creden Asia Company.

This accolade underscores STA’s pivotal role in advancing Thailand’s natural rubber sector and its dedication to sustainable, stable growth. The company continues to enhance competitiveness and operational efficiency while generating value for stakeholders, including farmers, partners, employees and investors. Amid global industry shifts, STA is committed to raising domestic rubber standards and strengthening its international market position.

The organisation prioritises responsible supply chain management, transparency and strong corporate governance. By integrating digital platforms and artificial intelligence, STA is modernising data connectivity across its operations, facilitating the industry’s transformation into the digital age and ensuring long-term resilience.

Comments (0)

ADD COMMENT

Link Copied!

Doublestar Tire showcased its European-market product portfolio at The Tire Cologne 2026, held in Germany from 9 to 11 June. The international exposition drew specialists from more than 100 countries and served as a venue for presenting sector-wide progress in sustainable manufacturing, intelligent production systems, and advanced material science. For Chinese tyre makers, the fair represents a strategic avenue into the European arena, and the company used this opportunity to reinforce its commercial momentum within the region.

Visitor interest at the manufacturer's stand remained high throughout the event, with many industry peers examining the aesthetic qualities and technical specifications of the displayed items. Product offerings fell into two principal categories, heavy-duty solutions and light-vehicle tyres, each engineered to satisfy distinct operational demands prevalent across European roads.

Among the commercial range, the DLD816 all-weather tyre emerged as a notable entry for extended haulage operations. Its construction incorporates cold-weather features and a reformulated rubber layer that extends operational lifespan, while closely spaced tread patterns furnish dependable grip under varied climatic circumstances. Stopping distance reductions on frozen surfaces received particular attention from logistics professionals.

The passenger side featured the DSU08 summer variant, which employs refined dynamic control architecture to harmonise acoustic comfort with responsive steering and durable construction. With a newly operational production facility in Cambodia complementing its European launch, the enterprise continues to cultivate its overseas standing through sustained client engagement and incremental market development.

Comments (0)

ADD COMMENT

Link Copied!