Hey there! 😊
Did you know that European companies are facing some challenges while doing business in the Chinese mainland? But guess what? They’re also building stronger connections and partnerships locally! Let’s find out more.
What’s Happening?
European businesses, like car makers and tech companies, have said it’s getting a bit tougher to operate in the Chinese mainland. About 73% of them mentioned they’re facing more difficulties than before. Some reasons include:
- More Competition: There are lots of companies making similar products, so it’s harder to stand out.
- Rules and Regulations: Understanding and following all the local laws can be tricky.
- Global Events: Things happening around the world can affect how businesses operate.
But There’s Good News!
Even with these challenges, many European companies are choosing to invest more in the Chinese mainland. Around 26% are boosting their local supply chains. A supply chain is like a path that products take from making them to selling them. By improving their supply chains locally, they can make and deliver things faster and better!
Why Are They Doing This?
- Quality Products: The Chinese mainland is great at making high-quality parts for a good price.
- Staying Competitive: By being closer to where things are made, companies can keep up with others.
- Better Services: They can offer better customer support when they’re directly involved.
Expert Opinions
Denis Depoux, a big boss at a company called Roland Berger, says that the Chinese economy is changing, not shrinking. Companies need to work more closely with local teams to do well.
Jens Eskelund, the president of the European Union Chamber of Commerce in China, says that the Chinese mainland is the best place to get great parts at low prices!
New Policies Are Helping
The Chinese government is making new rules to help businesses:
- Private Economy Promotion Law: This law helps companies by making fair rules and supporting innovation (that’s like creating new and cool things!).
- Financial Support: They are providing more money to help the economy grow.
In Short
Even though there are some bumps in the road, European companies are finding ways to succeed by working closely with partners in the Chinese mainland. It’s a bit like making new friends in school to help with a group project! 🤝
Reference(s):
European firms face China challenges but boost local supply chains
cgtn.com
