【By Observer.com, Qi Qian】
For a long time, EU companies represented by the China-EU Business Council (EUCCC) have enjoyed the huge benefits of the Chinese market, with their market space in China continuously expanding. Now, EU companies are turning the tables and complaining loudly.
On December 10, the China-EU Business Council (EUCCC) released a report titled "Choices and Challenges of Supply Chain Dependence," claiming that China's push for self-reliance and implementation of export controls have deepened global trade uncertainty and led to a more "aggressive" China policy by the EU, while European companies are accelerating efforts to reduce their reliance on the Chinese supply chain.
According to the report, the scale of the "trade imbalance" between China and the EU is continuously expanding, with the container ratio increasing from 1:2.7 in 2019 to 1:4 now.
The report mentions that China's extensive export controls on rare earths and key materials have put European companies into "crisis mode," with some companies reporting production shutdowns and losses of millions of euros.
The report points out that China holds a dominant position in the global supply chain system, which has also created a "dilemma." Although EU companies continue to invest in the Chinese market, China's dominance in the supply chain "has had negative effects on some foreign enterprises and third-country markets," prompting them to carry out supply chain diversification in certain areas, gradually reducing their dependence on the Chinese supply chain.
The China-EU Business Council stated that China's efficient industrial clusters have made it the world's only manufacturing superpower and the cornerstone of the global supply chain, as well as a crucial link in the production of many products. However, for many companies, cost and efficiency remain important considerations, and factors such as resilience and flexibility have gradually become key references in supply chain decision-making.
The report stated: "This means that companies need to actively reduce their dependence on the Chinese supply chain within feasible ranges and establish diverse sources of supply."
The China-EU Business Council also turned the tables, trying to "clean up" the EU's protectionist policies. The report claimed that as China promotes self-reliance and implements export controls, countries are beginning to reduce their dependence on China, for example, the EU has adopted a more "aggressive" China policy.
Photo of Yan Ci, President of the China-EU Business Council
According to Reuters and Hong Kong's South China Morning Post, earlier that day, Yan Ci, Chairman of the China-EU Business Council, told reporters at a briefing that the dependence of companies on Chinese rare earth magnets was just the "tip of the iceberg" of overall dependence on China.
"The business environment in China has a very direct impact on other parts of the world," Yan Ci said. "Discussions about dependence are now much more detailed than before... We can't even be sure whether Europe can produce toothpaste without using Chinese raw materials."
Reuters mentioned that at the time of the report's release, China's trade surplus had exceeded $1 trillion for the first time. According to data from the General Administration of Customs of China, in the first 11 months of this year, China's exports to the United States fell by 29%, while exports to Europe, Australia, and Southeast Asian countries surged. Exports to the EU increased by 14.8%, exports to Australia jumped by 35.8%, and exports to Southeast Asia rose by 8.2%.
European media Euractiv previously reported that during the period from May 2024 to May 2025, China's exports to the EU increased by 12%, with exports to France rising by 24% and exports to Germany increasing by 21.5%.
Wall Street Journal illustration
"This kind of statement is not unfamiliar to investors," reported the American Consumer News and Business Channel (CNBC), saying that in recent years, Western countries have been anxious about their dependence on the Chinese supply chain in various fields, promoting the so-called "decoupling" and "de-risking" rhetoric.
The report mentioned that early this year, a survey by the China-EU Business Council found that 73% of respondents said it was more difficult to do business in Asian countries. Despite this, over a quarter of respondents said they were increasing their local production in China, and only 10% considered moving their supply chains outside China.
The latest report on December 10 showed that over the past two years, more than 70% of European companies in China have re-evaluated their supply chain strategies. But still, over a quarter of companies further localized in China, and 22% of European companies still import irreplaceable key components from China.
Additionally, earlier this month, it was revealed that the European Commission is about to release the "Industrial Accelerator Act," pushing the so-called "Buy European" agenda, encouraging EU countries to purchase more European-made products. However, there are reports that this move has been opposed by nine EU countries, including the Czech Republic, which believe that mandating the purchase of European products would only harm the European economy.
Recently, EU leaders have been hyping up the issue of the Sino-European trade deficit and the so-called "overcapacity," urging China to increase its investment. In fact, since 2022, the EU's trade deficit with China has generally been declining, with a 27% decrease in 2023.
Chinese Ambassador to Italy Jia Guide recently stated that the current Sino-European trade deficit is the result of multiple factors, including the macroeconomic environment, industrial structure, demand changes, and international trade conditions between China and the EU, and the EU has maintained a long-term service trade surplus with China.
Jia Guide pointed out that European investors have fully enjoyed the continuous growth of the Chinese market, the trend of consumption upgrading, and the constantly expanding market space in China. He mentioned that European medical equipment has long held a monopoly in China, and Air Bus' market share in China has increased from about 20% in 2008 to over 50% now. Products made in Italy, such as helicopters, cars, furniture, clothing, wines, and olive oil, are greatly favored by Chinese enterprises and consumers.
He said that in recent years, the United States has pressured the EU to block high-tech product exports to China, exacerbating the EU's trade deficit with China. He hopes that the EU will uphold openness and cooperation, lift restrictions on high-tech product exports to China, and avoid interfering in bilateral trade.
Jia Guide emphasized that the Chinese and European economies are large, with frequent economic and trade relations, and competition and friction are inevitable. "Rebalancing" should be a two-way opening, and "de-risking" cannot be distorted into "de-cooperation." He believes that as long as both sides view the Sino-European relationship with a comprehensive, dialectical, and developmental perspective, adhere to mutual respect and dialogue and consultation, they can reach consensus, transcend differences, and jointly open up the next 50 years worth looking forward to.
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Original: toutiao.com/article/7582461956062396934/
Statement: This article represents the personal views of the author.