China – Innovation Ecosystem the Localisation Dilemma

June 26, 2023by EBOWN Admin0

The report highlights that the complexity of China’s business environment is necessitating a wide range of research and development (R&D) strategies to be deployed by European companies based on a member survey and in-depth interviews.

There are several positive market factors steering a large share of European companies towards deeper localisation. At the same time, long-standing issues deter others from bringing their technology into China, with many just engaging in development of existing products, while working on their core technologies outside of China.

While business confidence was significantly eroded by China’s stringent zero-COVID policy and the subsequent lockdowns and travel restrictions, many European companies expect this to be restored, though it will likely take years. However, the impact that geopolitics is having on the perceived stability of China’s business environment is only expected to worsen.

This report is the second of a planned three rounds of surveys and interviews, which fall under a consortium project supported and funded by the German Ministry of Education and Research. It is a result of collaboration between the European Chamber and MERICS, with input from partners at Ruhr University Bochum, and the University of Duisburg-Essen.

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