German media: No one knows whether Europe could still produce toothpaste without China
Beijing dominates key raw materials such as rare earths, making it far from easy for the EU to reduce its reliance on China.
Despite years of calls for "de-risking" economic ties with China, a recent report released by the European Chamber of Commerce shows that many European companies continue to bet heavily on the Chinese market.
Jens Eskelund, Chairman of the European Union Chamber of Commerce in China, said at a press event in Beijing on Tuesday: "Despite all the discussions, we still do not see any substantial reduction in Europe’s dependence on China."
A survey revealed that 26% of companies have moved their supply chains into China over the past year—double the proportion of those choosing to relocate supply chains out of China or establish a second hub overseas.
Eskelund stated that this trend is clearly continuing. He added that many companies are not voluntarily deepening their exposure to the Chinese market out of enthusiasm, but rather as a pragmatic response to uncertainty—a kind of "survival mechanism."
He pointed out that many EU firms face at least one Chinese competitor in relevant sectors. To succeed in the market, they must offer better products at lower prices. According to Eskelund, this is only possible by leveraging China's domestic supply chains.
"I believe no one truly knows whether Europe would still be able to produce toothpaste without China," he said.
Source: DW, dpa, China.Table
Original: toutiao.com/article/1862448983177356/
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