politics

European Firms Maintain Manufacturing in China Amid EU De-Risking Efforts

27 Mayıs 2026CNBC

European companies are maintaining their manufacturing operations in China due to the low costs, even as the European Union pushes for a de-risking strategy to lessen reliance on foreign supply chains. This trend highlights the ongoing tension between cost efficiency and geopolitical considerations.
Despite calls for diversification, the financial incentives of Chinese manufacturing continue to attract European businesses.
The EU has been increasingly vocal about the need to reduce dependence on non-European supply chains, particularly in light of geopolitical tensions and the desire for greater economic sovereignty. However, the allure of China's manufacturing capabilities remains a powerful counterforce, complicating the EU's object…
The persistence of European companies in China underscores a complex relationship between economic pragmatism and political strategy. While the EU's de-risking initiative aims to bolster local industries and reduce vulnerability, the reality of competitive manufacturing costs in China presents a significant barrier.

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