The Chinese government may be helping businesses to avoid doing business with China despite themselves.
Of the 130 European companies that responded to a recent EU Chamber of Commerce survey, about 40% said that China’s regulators are issuing export licenses more slowly than had been promised (Reuters, December 1, 2025).
The Chamber says that thanks to China’s still-burdensome export controls, about a third of its member companies are looking to find different sources. They may or may not ultimately extricate themselves from China’s markets. James Roth has pointed out on this site that foreign firms operating within the totalitarian regime grumble about the hardships of staying in China more often than they actually leave. Predictions of mass exodus have not panned out.
However, things change, and China continues to discourage.
“China’s export controls have increased the uncertainty felt by European businesses operating in the country, with companies facing the risks of production slowdowns or even stoppages,” says Chamber president Jens Eskelund. Now there’s even more pressure on a system of global trade “that was already under a great deal of stress.”
Nearly 70% of respondents to the chamber’s flash survey said their overseas production facilities depended on Chinese components covered by the export control regime, while 50% of exporting firms reported that their suppliers or customers made goods that were subject to the controls or would be soon.
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. They also raised concerns about potential intellectual property theft.
The export-control curbs that China announced in April 2025 and tightened in October were supposed to be substantially unwound as a result of the Trump-Xi dealmaking in South Korea several weeks ago.
The survey results “paint a picture that runs counter to the post-Busan optimism,” says a consultant quoted by Reuters, Alfredo Montufar-Helu. “The reality is that the deal was not signed in ink: Washington and Beijing are still debating the scope of concessions, while the EU is pushing for inclusion. Implementation is taking time, and in that gap, global supply chains are paying the price.”
Also see:
StoptheCCP.org: “Foreign Businesses to China: ‘Hurt me more!’ ”
StoptheCCP.org: “China’s Theft of IP Is Only Part of the Problem”
