European companies double down on China manufacturing despite EU de-risking push

European businesses are keeping supply chains in China because manufacturing costs remain low, despite EU pressure to reduce overseas dependence. The article highlights persistent supply-chain inertia rather than a discrete financial event, with limited immediate market impact. The key implication is that de-risking efforts may progress more slowly than policymakers want.

Analysis

European businesses are keeping supply chains in China because manufacturing costs remain low, despite EU pressure to reduce overseas dependence. The article highlights persistent supply-chain inertia rather than a discrete financial event, with limited immediate market impact. The key implication is that de-risking efforts may progress more slowly than policymakers want.