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• Chinese export controls are forcing European companies to rethink how they operate, after piling on additional costs.
• About a third of European firms in China said they plan to shift sourcing away from China as a result of the policies.
• The European Union Chamber of Commerce in China found that the curbs will result in additional costs for companies, with one respondent estimating the costs equivalent to around 20% of its gross global revenue for 2025.

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Chinese export controls are forcing European companies to rethink how they operate, according to a survey, after piling on additional costs that could exceed €250 million ($290 million) in the case of one firm.

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The toll reveals how vulnerable European businesses have become to disruptions in the flow of critical raw materials and technology from China. It also highlights the cost of China’s curbs over resources such as rare earths, which it imposed in retaliation for tariffs and other restrictions during the trade war with the US.

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EU firms said that the commerce ministry’s licence-application process was taking longer than the promised 45 days, with respondents also taking issue with its lack of transparency and disclosure requirements, and they also raised concerns about potential intellectual property theft, as reported by Reuters.

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