US tariffs on China to hit European companies

US tariffs levied on Chinese imports will have a significant impact on European companies exporting from China to the US, compelling many to reevaluate their business models and restructure their supply chain strategies, said Jens Eskelund, president of the European Union Chamber of Commerce in China.

Eskelund said this will lead to a substantial increase in operational costs, inefficiencies and ultimately higher prices for consumers. Many of the European Chamber's member companies have already shifted or are in the process of shifting their business strategies towards an 'in China for China' model.

This is being done both to mitigate risks derived from growing global trade and other geopolitical tensions, he added.

"The US is increasingly retreating from many of the principles that once shaped its approach to global trade and investment, creating unprecedented uncertainty in the global economy," said Eskelund, adding China therefore has the chance to establish a business environment that can provide the stability and reliability that investors require.

The European Chamber believes that a good start in this regard would be to follow through on the Chinese government's high-level pledges to improve the business environment for foreign investment, and looks forward to providing constructive recommendations as to how these can be best implemented.

The European Chamber to date has more than 1,700 members such as Volkswagen, Maersk, BNP Paribas, Siemens and Nokia across China.