- According to a recent Allianz survey of over 4,500 companies, Europe and Asia-Pacific are emerging as key destinations. While North America was previously favored, only 13 percent of Chinese firms with operations in the U.S. now plan to expand within the region. Instead, 30 percent are considering Asia-Pacific and 27 percent Europe – up from 22 percent and 13 percent, respectively.
- Similarly, 24 percent of US companies are now considering relocating production and suppliers from China to Europe, compared to 11 percent before Liberation Day.
- This means both increased competition from Chinese and US companies in the European home market, but also potentially increased demand and a boost to the current investment environment.
- Companies are currently seeking effective strategies in response to the escalating U.S.-China trade war. In the short term, measures such as front-loading, pricing adjustments, and supplier negotiations will dominate. However, many are beginning to reconsider their global supply chains and production setups.
- In the long term, the trend towards more fragmented and regionalized supply chains will continue and companies will shift their production and sourcing footprints.
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