EU firms in China lament having to silo operations to stay competitive, survey finds
China is facing increasing pressure to allow foreign companies greater freedom to localise their operations in response to restrictive regulations and market barriers. This shift is causing many multinational firms to reassess their strategies in the country, as confidence in the market continues to erode.
According to a report from the European Union Chamber of Commerce in China, European companies are increasingly isolating their operations in China due to a tightening grip on national security and growing protectionist measures. The report, which surveyed 128 member companies, highlights that this "siloing" approach is a strategic response to mitigate risks and comply with local regulations. Companies are adapting by localising their supply chains, workforce, and IT systems to ensure market access and avoid penalties for non-compliance.
Furthermore, the current geopolitical climate and escalating trade tensions are pushing companies to rethink their supply chain and research-and-development strategies. This adjustment aims to enhance operational resilience in a rapidly changing environment, reflecting a broader trend of multinational firms navigating the complexities of doing business in China.
via SCMP Full Text Feed
China is facing increasing pressure to allow foreign companies greater freedom to localise their operations in response to restrictive regulations and market barriers. This shift is causing many multinational firms to reassess their strategies in the country, as confidence in the market continues to erode.
According to a report from the European Union Chamber of Commerce in China, European companies are increasingly isolating their operations in China due to a tightening grip on national security and growing protectionist measures. The report, which surveyed 128 member companies, highlights that this "siloing" approach is a strategic response to mitigate risks and comply with local regulations. Companies are adapting by localising their supply chains, workforce, and IT systems to ensure market access and avoid penalties for non-compliance.
Furthermore, the current geopolitical climate and escalating trade tensions are pushing companies to rethink their supply chain and research-and-development strategies. This adjustment aims to enhance operational resilience in a rapidly changing environment, reflecting a broader trend of multinational firms navigating the complexities of doing business in China.
via SCMP Full Text Feed
