European companies double down on China manufacturing despite EU de-risking push
European companies are increasingly relying on Chinese manufacturing despite the EU's efforts to reduce dependency. A report highlights the efficiency and cost advantages of Chinese production facilities, which often utilize advanced automation. Many EU firms find that integrating into Chinese supply chains is essential for competing in the global market.
- ▪Chinese electric vehicle maker Nio operates a factory with 941 autonomous robots.
- ▪A report indicates that about three-fourths of EU companies in China find their production facilities more efficient than elsewhere.
- ▪Quarterly negotiations and selective state subsidies help Chinese products reach global markets at lower costs.
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For example, Chinese electric vehicle maker Nio, which has expanded into Europe, said one of its factories in China operates with 941 robots that can work fully autonomously across multiple vehicle models simultaneously — without workers on the production floor. That setup allows the factory to operate around the clock.It's all part of a local manufacturing ecosystem with access to lower industrial energy prices and raw material costs, Roland Berger pointed out in a March report titled "China's cost and speed advantage: A wake-up call for Western companies."The report added that quarterly negotiations with suppliers on price and selective state subsidies often help Chinese products reach global markets earlier and at far lower costs.About three-fourths of EU companies in China said their…
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