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Adaptation strategy

Amidst escalating geopolitical competition, many believe European businesses are leaving China to reduce their dependence. However, recent surveys suggest that the majority of businesses are not withdrawing en masse, but rather adjusting their investment models and supply chains to adapt to the new business environment.

Báo Sài Gòn Giải phóngBáo Sài Gòn Giải phóng03/07/2026

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Illustrative image

According to the European Union Chamber of Commerce in China 's 2026 Business Environment Survey, 94% of businesses surveyed still view China as an important source of inputs, and 75% rate manufacturing operations in China as more efficient than in other locations.

Notably, 32% of businesses are strengthening their supply chain operations in China, 24% are expanding their operations in China while also developing bases in other markets, and 37% are maintaining their current strategy.

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China's greatest advantage remains its complete industrial ecosystem, dense supplier network, and increasingly strong innovation capacity. Surveys show that 48% of European businesses believe Chinese companies in the same field are more innovative, while 28% rate their innovation capabilities as comparable. This demonstrates that China has transformed from a place with low production costs into a center for research, development, and manufacturing of technology.

Nevertheless, the EU remains committed to a risk mitigation policy, encouraging diversification of supply sources for strategic sectors such as semiconductors, critical minerals, and essential raw materials.

In reality, during the restructuring of their supply chains, European businesses are choosing a more flexible approach, continuing to integrate with China's manufacturing ecosystem to maintain competitiveness while expanding their networks in other markets to enhance their resilience to global economic and geopolitical fluctuations.

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Source: https://www.sggp.org.vn/chien-strateg-thich-ung-post860635.html

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