According to a European Union Chamber of Commerce in China survey, European companies are increasingly shifting supply chains away from China, amid rising trade uncertainty and Beijing’s expanding export controls on critical materials. More than 70% of EU firms operating in China have reassessed their supply chain strategies over the past two years, with a notable share exploring alternative sourcing outside China, plus increasing regional localization. Sector responses vary, with IT, telecom, and retail firms diversifying away while others onshore within China. However, about 22% still depend on Chinese components with no current alternatives, underscoring persistent vulnerabilities.