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!

JK Tyre & Industries Ltd. has formally completed the merger of its subsidiary, Cavendish Industries Ltd., into its operations, a strategic move that follows Cavendish's acquisition in 2016. At that time, Cavendish was operating at only 30 percent of its manufacturing capacity for various vehicle tyres. Under JK Tyre's stewardship, the subsidiary received extensive managerial, financial and technical support, which facilitated a complete operational turnaround. Through optimised manufacturing processes, capacity utilisation dramatically increased to 95 percent. Additional expansion at the Laksar facility further bolstered its substantial contribution to the company's overall tyre production.

This consolidation is projected to generate significant value by combining operational strengths, achieving greater economies of scale, and creating a more robust and diversified product portfolio. The unified entity will also benefit from an extensive, integrated distribution network. The merger aligns with JK Tyre's enduring strategy of pursuing sustainable growth through both organic projects and strategic acquisitions. Cavendish’s successful integration represents the company’s third major operational turnaround, following previous revitalisations of Vikrant Tyres and JK Tornel Mexico, alongside the establishment of two Greenfield plants.

Comments (0)

ADD COMMENT

Link Copied!

Hankook Tire has further solidified its commitment to sustainable manufacturing with the recent International Sustainability & Carbon Certification (ISCC) PLUS awarded to its Daejeon plant. This globally recognised certification validates the use of bio-based and recycled materials and ensures supply chain transparency, representing the company’s third such achievement following earlier certifications at its Geumsan and Hungary facilities. At the Daejeon site, the substitution of fossil-based synthetic rubber with bio-circular polymers has substantially lowered the environmental impact across the entire product lifecycle.

This milestone reinforces Hankook Tire’s comprehensive ESG strategy, which now encompasses original equipment, replacement and motorsport tyre production. A notable example is the supply of high-performance rally tyres, incorporating up to 31 percent sustainable materials, for the 2025 FIA World Rally Championship. The company’s sustainable innovation is also evident in products like the iON evo tyre for the Porsche Taycan, which uses 45 percent recycled and recyclable materials without compromising performance. Similarly, the iON GT replacement tyre for the European market integrates up to 77 percent certified materials and has earned top EU Tyre Label ratings.

Beyond product development, Hankook Tire is pioneering future mobility solutions, showcased by a concept tyre with 81 percent sustainable materials presented at IAA Mobility 2025. In electric motorsport, as the exclusive tyre supplier for Formula E, the company has earned the FIA’s highest environmental accreditation and is set to introduce the iON Race tyre containing 35 percent sustainable materials.

To accelerate these efforts, Hankook Tire is pursuing open innovation through collaborations with technology partners such as ROTOBOOST and Solvay, focusing on advanced materials like turquoise hydrogen-based carbon black and circular silica. The company is also engaged in national research consortia to validate carbon-reduction technologies and enhance the commercial readiness of sustainable alternatives, consistently aiming to merge high performance with ecological responsibility across its global operations.

Comments (0)

ADD COMMENT

Link Copied!

Bridgestone India has reconstructed and revitalised the government school in Kuti village, near the National Automotive Test Tracks (NATRAX) in Madhya Pradesh, under its Corporate Social Responsibility (CSR) initiative. The project directly serves a marginalised community of tribal groups and migrant labourers from states like Uttar Pradesh and Bihar. Previously, the school operated in a perilous and crumbling structure, lacking even basic facilities for its 175 students, despite the steadfast efforts of three teachers. The new, purpose-built campus now provides structurally safe and vibrant classrooms, dedicated child-friendly spaces and access to essential amenities.

This transformation is set to dramatically improve student enrolment and daily attendance by replacing a hazardous environment with one that is secure and conducive to learning. More than just infrastructure, the initiative instils a renewed sense of dignity and aspiration in both students and their families, who work primarily as daily-wage labourers, vegetable vendors and construction workers.

Executed in collaboration with the district administration and education department, this effort reflects Bridgestone India’s core mission of driving long-term social impact through strategic community partnerships. By focusing on critical gaps in educational infrastructure for displaced and underserved populations, the company fosters an environment where children can truly thrive and communities can build a more hopeful future.

Comments (0)

ADD COMMENT

Link Copied!

Marking a significant milestone, the Nokian Tyres facility in Oradea, Romania, produced its one millionth tyre of the year on 20 December 2025, thereby reaching its annual production target. This new factory, inaugurated in September 2024, began deliveries in March and is dedicated to supplying passenger car tyres for the European market.

Its inaugural year saw the production of premium models like the Nokian Tyres Snowproof 2 winter tyre, upholding the company’s 90-year legacy of safety and sustainability. The product range expanded this year with the launch of two further tyres for Europe: the Seasonproof 2 all-season and the Powerproof 2 summer tyre, with more new products planned for future manufacture at the site.

Distinguished as the world’s first full-scale zero-CO2-emissions tyre factory, the Oradea plant operates entirely without fossil fuels, employing cutting-edge production technology. Upon its anticipated completion around the end of 2027, it will become Nokian Tyres’ largest global production facility, accounting for roughly 40 percent of total capacity. It represents the company’s third major manufacturing hub alongside its existing factories in Nokia, Finland, and Dayton, US. Currently, the Romanian operation employs over 500 people, underscoring its important role in Nokian Tyres’ strategic European production network.

Paolo Pompei, President and CEO, Nokian Tyres, said, “I am very proud of our entire team for their hard work in reaching this milestone. It is a strong testament to our commitment to customers across Europe, enhancing our service level and delivering innovative products that ensure safety and comfort for drivers in all conditions.”

Comments (0)

ADD COMMENT

Link Copied!