China’s tightening export controls are pushing European firms to explore new supply chain capacity outside of the world’s second-largest economy, according to a European lobbying group who say firms are seeking cover from the US-China trade war, reports Reuters.
The European Union Chamber of Commerce in China said a third of its member companies were looking to shift sourcing away from China due to Beijing’s tight export controls, with 40% of its flash survey’s respondents reporting that the commerce ministry is processing export licences more slowly than promised.
“China’s export controls have increased the uncertainty felt by European businesses operating in the country, with companies facing the risks of production slowdowns or even stoppages,” said Jens Eskelund, the chamber’s president.