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China remains central to European firms' supply chains, survey finds

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China remains central to European firms' supply chains, survey finds

2026-07-15 16:31 Last Updated At:16:37

China remains a major source of revenue and a key supply-chain base for European companies, according to a new survey by the European Union Chamber of Commerce in China.

Nearly one in four chamber members said revenue generated in China accounted for more than a quarter of their global revenue, the chamber's Business Confidence Survey 2026 showed.

The survey also highlighted China's continuing role in companies' sourcing strategies. Ninety-four percent of respondents said the market was important to their procurement operations, citing its advantages in delivery speed, reliability and quality.

China's manufacturing efficiency remains a major factor. Seventy-five percent of surveyed companies said their production efficiency in China was higher than in other parts of the world, supported by what the chamber described as an efficient and highly cost-competitive supply-chain system.

The findings help explain why European executives have continued to visit China this year, looking beyond established business centers to assess opportunities in regional industrial hubs.

Adam Dunnett, secretary general of the European Union Chamber of Commerce in China, has visited six Chinese cities in the first half of this year. He recently led a delegation of about 120 EU companies to Nanning, capital of the Guangxi Zhuang Autonomous Region in south China, where they examined opportunities in artificial intelligence, energy storage and manufacturing.

"Guangxi, with the new canal that they've built, has now become the gateway to ASEAN (the Association of Southeast Asian Nations) countries. I was in Chongqing earlier this year as well -- [It has] very strong motorcycle industry, computer industry, semiconductor industry. So, in China, there's pockets of, you know, industrial strength in different cities and provinces. And, yeah, you have to go out there and explore it to understand what's happening," Dunnett said.

Mathias Boyer, chair of the Danish Chamber of Commerce in China, said companies needed to increase investment in China-based research and development to keep pace with local innovation.

"My reading of the numbers, and also when I talk to companies, is that China is still an extremely important basis for supply. You need to invest more in China -- in China R and D -- to be on par with Chinese innovation. The Chinese authorities' [decision] to implement this policy of visa-free travel to China [is important], because I think it really is easy for leadership from headquarters to come to China to see innovation," Boyer said.

China remains central to European firms' supply chains, survey finds

China remains central to European firms' supply chains, survey finds

Chinese industrial robot makers are stepping up development of embodied artificial intelligence (AI) systems, aiming to tap rising global demand for smart robots capable of flexible, small-batch production.

At Huayan Robotics in south China's Guangdong Province, engineers are developing seven‑axis robotic arms with embodied intelligence. By feeding multi-scenario industrial data into multimodal large models and equipping the arms with new force sensors, they have given the machines the ability to interact naturally with their environment, much like humans.

"When someone applies force to the robot, it can perceive the force with high precision. In scenarios like screwing or material handling in factories, it can sense both the magnitude and direction of forces, while traditional robotic arms lack this kind of capability," said Xie Peimin, an engineer of the company.

Meanwhile, a team at the Guangdong Topstar Technology Company is developing an embodied intelligence workstation with four-axis industrial robots that can understand human language.

"Our goal is to enable traditional industrial robots to directly understand human language through research and development, thus achieving flexible production," said Sun Bangle, an engineer at Topstar.

According to statistics, Chinese companies launched a total of 108 new industrial embodied AI robots from January 2025 to the end of May 2026, covering a wide range of application scenarios, including material handling and assembly.

China's robot makers push embodied AI to meet global demand

China's robot makers push embodied AI to meet global demand

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