13:45 10 May 2025
European Companies in China Feel Squeezed by US–China Trade Tensions
European businesses operating in China are increasingly alarmed by rising geopolitical tensions between the US and China, with 59 percent reporting deteriorating business conditions since the start of the year, according to a new report from the European Union Chamber of Commerce in China (EUCCC).
The survey of 1,700 firms found that 52 percent believe the business environment has become more politicized since Donald Trump’s return to the White House, while 76 percent cite increased political pressure from the US, and 45 percent from China. Over half reported serious supply chain disruptions due to US–China trade frictions.
EUCCC President Jens Eskelund attributes falling business confidence to “uncertainty and unpredictability” stemming from new US tariffs on Chinese goods, some as high as 145 percent, and China's retaliatory measures of up to 125 percent.
Despite EU leaders reaffirming their commitment to deeper ties with China in a letter to President Xi Jinping, Brussels also pledged cooperation with Washington to curb China's dominance in critical materials and steel.
As trade talks between the US and China are set to begin in Switzerland, the EU has warned it may impose €100 billion in tariffs on US goods if negotiations fail.
