Many businesses said in a survey that export control measures affect China’s reliability as an export hub.
Beijing’s export controls are forcing businesses in Europe to move sourcing away from China, according to a survey conducted by the European Union Chamber of Commerce in China and published on Dec. 1.
The lobby group published the results of a flash survey completed by 131 of its members, in which 75 companies (57 percent) said they expected to be, or had been, impacted by Chinese export controls. Of those, more than one in three (36 percent) said they plan to work with suppliers to develop capacity outside China.
However, uncertainty remains with a large proportion of the group’s members, with 43 percent saying they have not yet made a decision on how to respond to the controls.
“China’s export controls have increased the uncertainty felt by European businesses operating in the country, with companies facing risks of production slowdowns or even stoppages,” EU Chamber of Commerce President Jens Eskelund said in a statement.
Eskelund said that export controls had also prompted “strong responses” from Beijing’s trading partners, “which has added more pressure to a global trade system that was already under a great deal of stress.”
Supply Chains, Delivery, Revenue Impacted
Many businesses said in the survey that export control measures affect China’s efficiency and reliability as an export hub.
Respondents noted that it would put strain on supply chains, with 60 percent saying they expect “moderate” or “significant” disruptions to their supply chains once all of Beijing’s planned measures come into effect. Another 13 percent “expect to face production stoppages or slowdowns,” the statement said.
Delivery times will be impacted by the licence approval process, with 6 percent saying it added less than a month to delivery times, 34 percent saying it added one to two months, and 40 percent saying it added more than two months. The remaining 21 percent said they had not applied for any export licences yet.
The EU Chamber of Commerce said that “not a single respondent” to the survey said the process had added no additional time to delivery processes.
Export controls will also affect revenue, according to European businesses.
“While estimates of the impact of Chinese export controls on companies’ finances vary substantially, for those acutely impacted the picture is stark,” the lobby group said.
It said one company responding to the survey indicated the measures “will result in estimated additional costs of 20 percent of its 2025 gross global revenue.” Another said it expects additional costs of upward of 250 million euros ($291 million).
