For several years, European companies have been talking about reducing their dependence on China.
The reasons are easy to understand.
Geopolitical tensions, tariffs, changing regulations and supply chain disruptions have made many companies rethink where they buy and manufacture their products.
Some are looking for suppliers in Europe. Others are exploring Southeast Asia, India or other manufacturing markets.
But there is one question that is harder to answer:
Can Europe really reduce its dependence on China without increasing costs or making its supply chains more complicated?
Moving away from China sounds easier than it is
China is no longer simply a country where companies go to find lower-cost manufacturing.
Over the past decades, it has developed one of the world’s most complete manufacturing ecosystems.
A company looking for a product may find not only the final manufacturer, but also suppliers for raw materials, components, packaging, tooling, electronics, finishing and assembly within the same industrial region.
This makes a real difference.
For a European company developing a new product, working with several specialised suppliers in different countries can mean longer lead times, more logistics and more coordination.
China’s dense supplier network can often make the process much simpler.
This is particularly true for customised products, OEM projects and products that require several different manufacturing processes.
Diversification does not necessarily mean leaving China
This is where the discussion becomes more interesting.
Reducing dependency does not necessarily mean stopping sourcing from China.
For many companies, the more realistic approach is to diversify.
A business might keep its existing Chinese supplier while developing a second source in another country.
Another company may continue manufacturing certain products in China but move part of its production elsewhere.
The objective is not necessarily to find one country that replaces China.
It is to avoid depending too heavily on one supplier, one market or one production location.
This approach can make a supply chain more resilient while keeping access to China’s manufacturing capabilities.
China is also changing
At the same time, China’s role in global manufacturing is evolving.
The country is increasingly supplying not only finished consumer products, but also machinery, industrial components, production equipment and technologies used by manufacturers elsewhere.
This means that even companies trying to diversify their production may still rely on Chinese suppliers somewhere further up the supply chain.
A product assembled in another Asian country, for example, may still contain components, machinery or materials sourced from China.
So the question is becoming more complex.
It is no longer simply:
“How can we move production out of China?”
It is also:
“Where does China still make sense within our supply chain?”
Cost is only part of the equation
When companies compare China with alternative sourcing destinations, price is often the first thing they look at.
But the real cost of sourcing goes beyond the factory quotation.
Shipping, tooling, minimum order quantities, quality control, product development, communication and production lead times all matter.
A cheaper unit price does not automatically mean a cheaper supply chain.
This is particularly important for European companies buying customised or technical products.
Finding a supplier that can manufacture the product correctly, communicate efficiently and maintain consistent quality can be more important than finding the lowest initial quotation.
A more flexible sourcing strategy
For European buyers, the future may therefore be less about choosing between China and Europe.
It may be about building a more flexible sourcing strategy.
China can remain an important manufacturing base, while companies develop additional suppliers in other countries where it makes sense.
This requires a closer look at each product.
Where is it manufactured?
Which components are critical?
How easy is it to change suppliers?
What is the real landed cost?
What happens if production is interrupted?
And perhaps most importantly:
Which suppliers can support the product over the long term?
These are not always easy questions to answer from Europe.
Where ECI can help
This is where a sourcing partner can bring value.
At ECI, we work with European companies looking for suppliers and manufacturing solutions in China.
Our role is not simply to find a factory and send a quotation.
Depending on the project, we can help identify suitable manufacturers, compare different production options, discuss technical requirements, organise samples, visit factories and follow production and quality control.
For companies already sourcing in China, this can also mean developing alternative suppliers and reducing dependence on a single factory.
The objective is not to convince companies to source everything from China.
It is to help them understand where China can still bring value, where diversification makes sense, and how to build a sourcing strategy that works in practice.
China or no China?
The debate around reducing dependence on China is likely to continue.
For some products, moving production elsewhere may make sense.
For others, the manufacturing ecosystem, flexibility and supplier network available in China can still be difficult to replace.
There may not be one answer for every company.
The more useful question could be:
Instead of asking whether Europe should leave China, should companies be asking how China should fit into their future supply chain?