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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Falken Tyre Europe GmbH is embarking on a new brand initiative designed to put its all-terrain capabilities to the test in a practical, real-world environment. The Falken Adventure Camp, set to take place in New York State from 28 May to 7 June 2026, will place the Falken WILDPEAK A/T AT3WA tyre at the heart of an immersive driving experience. Participants will navigate a curated route through a diverse range of landscapes, from bustling urban settings to serene forests, gravel paths and remote countryside trails, showcasing the tyre’s adaptability.

The WILDPEAK A/T AT3WA is engineered for drivers whose journeys frequently shift between paved roads and unpaved terrain. This event aims to make that transition tangible, demonstrating the tyre’s competence in both everyday commuting and more rugged off-road conditions. Its selection for the camp is bolstered by a recent industry accolade; in September 2025, the tyre secured first place overall in a prestigious off-road tyre test, outperforming six competing all-terrain models. It was specifically praised for its exceptional performance on loose surfaces, including reliable traction, short braking distances and consistent lateral grip.

The Adventure Camp’s philosophy steers clear of extreme off-road challenges, instead focusing on authentic driving scenarios that highlight the tyre’s versatility. The planned journey is intended to illustrate how modern mobility can harmoniously coexist with nature-focused exploration. Enthusiasts interested in participating can submit their applications through the dedicated campaign website until the end of March 2026.

This initiative represents Falken’s broader strategic shift towards more experiential marketing. By moving beyond traditional product presentations, the company seeks to create memorable encounters where drivers can directly experience product performance. The goal is to make the tyre’s strengths tangible within genuine, relatable driving contexts, fostering a deeper connection between the consumer and the brand.

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The Association of Natural Rubber Producing Countries (ANRPC) hosted representatives from NOMURA JIMUSHO, INC. at its Kuala Lumpur Secretariat on 12 February 2026. The visit facilitated strategic discussions between ANRPC Secretary-General Dr Suttipong Angthong, his team and the firm’s Yoshiyuki Hosaka and Taichi Nomura.

Deliberations focused on ANRPC’s core strategic objectives, which include boosting productivity and lowering production costs. Other key areas of discussion involved strengthening downstream value addition, creating diversified income sources and tapping into the environmental value of natural rubber. Central to the dialogue was the overarching goal of improving livelihoods for smallholder farmers.

The exchange highlighted a mutual commitment to advancing sustainable growth and circular economy models within the sector. The meeting underscored the critical role of enhanced partnerships in navigating current industry challenges and capitalising on emerging global opportunities.

The collaborative spirit of the visit reinforced a shared dedication to fostering a more sustainable, resilient, and environmentally conscious future for the natural rubber industry.

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Trelleborg Tires is set to introduce a significant performance assurance programme at the upcoming Commodity Classic in San Antonio, scheduled from 25 to 27 February. This new initiative guarantees up to 5,000 hours of certified tread wear for several of its key rear tyre ranges, including the TM1060, TM1000, TM900 and TM800 ProgressiveTraction models. The offer underscores the company’s dedication to providing durable solutions that deliver tangible value, enabling farmers to extend equipment operation, minimise downtime and safeguard their investments under rigorous field conditions.

Access to this guarantee is provided exclusively through the Trelleborg Premium Care Portal. This platform not only facilitates secure registration but also connects customers with expert support and personalised advice aimed at optimizing tyre longevity and performance.

Attendees at Booth #1171 will have the opportunity to explore the company’s latest advancements in agricultural tyres, particularly for high-horsepower tractors. Featured exhibits will include the TM1000 ProgressiveTraction in size VF800/70R38, the TM900 ProgressiveTraction in 710/70R42 and the TM800 PowerFlex in VF650/65R38, which showcases a newly engineered tread pattern for improved roadability and field performance. Additionally, the TM200 ProgressiveTraction for vineyard and orchard applications will be on display in size VF440/65R24.

Each of these products integrates Trelleborg’s patented ProgressiveTraction technology, characterised by a distinctive double-edge lug design. This innovation enhances traction, stability and self-cleaning capabilities, effectively reducing slippage and vibration while boosting fuel efficiency and prolonging tread life. Visitors can also learn about Pressure Field Operation (PFO) technology, which allows tyres to perform optimally at lower inflation pressures in specific conditions without sacrificing load capacity. Through these farmer-centric innovations, Trelleborg continues to reinforce its leadership in the agricultural sector by helping producers achieve greater productivity and operational efficiency over the long term.

Tom Rodgers, Commercial Director, Trelleborg Tires, said, “We know that tyre replacement represents a significant operational cost for farmers. With this 5,000-hour performance guarantee, we stand firmly behind our ProgressiveTraction technology and offer a clear commitment to long-term performance.”

Andrea Masella, Marketing Director Agriculture North America, said, “With every innovation, we design our tyres from the soil up to perform where it matters most — in our customers’ fields. By combining advanced engineering with a 5,000-hour certified performance commitment, we provide farmers with solutions that maximise productivity, protect their investment and support long-term operational success.”

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Magna Tyres has expanded its portfolio with the launch of the LH32, a new tyre engineered specifically for trailer use in long-haul and regional transport operations. Designed to address the rigorous demands of modern logistics, the tyre delivers a balanced combination of durability, consistent performance and safety across diverse road conditions. Its advanced tread pattern is optimised to provide reliable traction and even mileage on both highways and regional routes, supporting safe and efficient travel regardless of the terrain.

The LH32 features a robust radial casing constructed with a specially formulated compound, which enhances load-bearing capacity and contributes to improved fuel efficiency. This structural integrity not only promotes longer tyre life but also boosts driver confidence through stable handling. Importantly, the tyre holds full ECE approval, confirming its compliance with strict European safety and performance standards. By integrating these technical attributes, the LH32 enables transport companies to elevate operational efficiency while maintaining high safety benchmarks, making it a practical solution for fleets aiming to optimise performance without compromise.

Key specifications of the Magna LH32

Application: Trailer
Segment: Long haul / Regional
Size: 385/65R22.5
PR: 24
Load/Speed Index: 164K
Fuel Efficiency Class: B
Wet Grip Class: B
Markings: 3PMSF & M+S
Noise Level: 73 dB, Class B

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