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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Doublestar Tire showcased its high-value tyre solutions at the recently concluded 2025 Latin Tyre Auto Parts Expo in Panama City. The event, considered one of Latin America's premier trade events for tyres and automotive components, saw participation from manufacturers, distributors and industry professionals, along with visitors and potential partners.

Doublestar presented a diverse range of innovative tyres tailored to Latin America’s demanding conditions, including high-performance passenger car tyres and robust commercial tyres for trucks and buses. Given the region’s varied terrain and climate, the company highlighted products engineered for superior wear resistance, wet traction and durability. Among the featured solutions was the TBR model TPR79, designed with a specialised tread pattern for enhanced off-road performance, alongside the PCR AT and MT lines – popular among SUV drivers for their safety, extended lifespan and reliable grip on challenging roads.

This exhibition aligns with Doublestar’s strategy to strengthen its presence in Latin America as a provider of advanced, dependable tyre technology. The company remains focused on R&D to deliver sustainable, high-performance solutions that address the dynamic needs of the global automotive market, ensuring safety, efficiency and environmental responsibility.

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The German rubber industry has reiterated its call for the adoption of a ‘First Touch Principle’ in the EU Deforestation-Free Regulation (EUDR), citing excessive bureaucratic burdens. Boris Engelhardt, Managing Director of the German Rubber Industry Association (wdk), emphasised that businesses – particularly small and medium-sized enterprises – are struggling to meet the EUDR’s extensive documentation requirements. The proposed principle would simplify compliance by requiring only the first importer in the European supply chain to provide proof of adherence, exempting downstream processors and manufacturers from redundant verification.

As a major user of natural rubber, the European rubber industry relies heavily on imports from Asia and Africa, making the EUDR’s proposed ‘zero-risk class’ – advocated by 18 EU member states – irrelevant to the sector. While fully supporting the regulation’s goals of protecting human rights and ecosystems in rubber-producing regions, Engelhardt argued that enforcement should focus on initial importers rather than imposing repetitive checks across the entire supply chain.

He noted that established natural rubber traders already comply with EUDR standards, and the industry can trace whether imported finished goods contain natural rubber. This, he stated, should suffice for regulatory oversight. Engelhardt urged EU policymakers to adopt the ‘First Touch Principle’ to streamline compliance, reduce administrative strain, and ensure the regulation achieves its intended impact without unnecessary complexity.

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Gurugram-headquartered tyre major Apollo Tyres has announced the appointment of Mahalakshmi Ramaswami as its new Chief Human Resources Officer, effective immediately, the company said in a regulatory filing.

Ramaswami’s appointment was approved by the board of directors following a recommendation from the Nomination and Remuneration Committee.

Prior to joining Apollo Tyres, she most recently served as the Head of HR for the Southeast Asia Cluster based in Singapore at Mondelez International.

She brings over two decades of experience across multinational organisations spanning fast-moving consumer goods, telecommunications, pharmaceuticals and consulting sectors.

During her tenure at Mondelez, Ramaswami is credited to have a played pivotal role as the HR Director for India Region in the business turnaround by aligning people strategy with organisational objectives.

She also has held leadership roles at prominent Indian and multinational companies including Bharti Group, Ranbaxy, Ballarpur Industries and EY.

Ramaswami holds an MBA from IMT Ghaziabad and a Bachelor’s degree in Physics (Hons.) from Delhi University.

On the other hand, as part of the Management Restructuring at Apollo Tyres, Dipankar Ghosh, Group Head of HR Business Partnership for Manufacturing & Projects, will no longer be part of the senior management structure as defined under securities regulations, effective 16 July.

The restructuring reflects Apollo Tyres’ strategic focus on strengthening its human capital capabilities as the company navigates competitive pressures in both domestic and international markets.

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Bridgestone India has presented the European Alignment Certificate to the Automotive Research Association of India (ARAI), recognising the successful completion of their Rolling Resistance (RR) Lab Alignment. The certificate was presented to Dr Reji Mathai, Director of ARAI, by Rajarshi Moitra, Deputy Managing Director of Bridgestone India, during a ceremony attended by senior leaders from both organisations.

This milestone strengthens the partnership between Bridgestone and ARAI, India’s leading automotive R&D institution for testing and standardisation. Rolling resistance plays a crucial role in enhancing fuel efficiency, aligning with both organisations’ commitment to advancing tyre technology. The certification underscores their shared dedication to fostering innovation, improving testing capabilities and promoting sustainable mobility solutions in India.

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