The trend of European companies in China diversifying their supply chains has become more pronounced over the past half-decade. Incidents such as the COVID-19 pandemic and the war in Ukraine, along with a more general resurgence of geopolitical tensions, have exposed the fragility of supply chains, compelling companies to increase operational resilience through a combination of both onshoring and offshoring.

At the extreme end of onshoring and localising functions lies siloing, whereby certain functions—or even entire operations—in a certain market are cut off from operations in the rest of the world. In the China context, some companies feel they have little choice but to silo their operations. The decision to do so is intended to ensure that they are fully compliant with Chinese regulations, while being recognised as a trusted, local supplier so that they can continue to work with Chinese partners and qualify for procurement.

However, siloing operations entails a significant trade off. Some European companies have almost entirely localised their supply chains, workforce, sales and procurement functions, and siloed their research and development (R&D), data and information (IT) systems in China. While this may result in their products qualifying as being ‘made in China’, they have also increased costs and global compliance risks, while sacrificing their ability to leverage economies of scale and global solutions, stripping away their international competitiveness.

Presenting foreign companies with no other alternative but to silo poses several risks both to China’s economy and its companies. Although some European companies are onshoring supply chains into China to increase resilience, a similar number are moving their supply chains out for the same reason. The outflow of foreign direct investment (FDI) to other markets, which is already taking place, is likely to accelerate, leading to a significant loss of jobs and tax revenues for China. Meanwhile, other markets could be increasingly compelled to look into tools that can better protect their own companies against Chinese competition on their own turf.

Agenda:

9:00-9:30   Registration

9:30-9:35   Opening Remarks

• Carl Hayward, General Manager, European Chamber

9:35-10:05   Presentation on Main Findings

• Jens Eskelund, President, European Chamber

10:05-10:55  Q&A

10:55-11:00   Closing Remarks

* This is a joint media/member launch event webinar. The media is by invitation only, the presentation is on the record, European Chamber spokespersons are to be quoted in their European Chamber capacity only. 

* This event is held in English with no translation services.

* Embassies and consulates of European member states can have one complimentary ticket on the first-come-first-served basis.

Advisory Council Policy

Members of the Advisory Council may receive complimentary admission to Chamber seminars and conferences up to two attendees per event. Additional participants will be charged at the member rate.

Advisory Council members will still be charged the standard member rate for participation in training courses and special events, such as gala balls, government appreciation dinners, exclusive tours or admission to corporate social events/tournaments.

For further information contact Luyang Syvänen lsyvanen@europeanchamber.com.cn

Terms & Conditions

Events have limited seating so to ensure your attendance we encourage advance online registration and payment. We cannot guarantee entry to anyone not registered in advance. A confirmation email with instructions on how to join the webinar will be sent to registrants who have paid. Fapiao will be issued within 5-10 working days after the event.

- Non-members will receive an email with a payment code shortly.

Fapiao will be mailed to you within 5-10 working days after the event. Events are held in English.

Cancellation Policy

If you cannot attend the event for which you have registered, please cancel your registration no later than one business day prior to the event. If you fail to notify us of your cancellation in a timely fashion, you will be charged for event costs.

To cancel you can: 1) email cdu@europeanchamber.com.cn, or 2) cancel online if you registered for the event through the website.

Disclaimer

Please notice that European Union Chamber of Commerce in China might take photographs from the event and post these on its public web-page (or social media platforms) in order to create awareness of these events. By attending this event you consent to European Union Chamber of Commerce in China taking and using such photographs as described above.

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