Unmanned trucks transport containers at Dapukou Container Terminal in Zhoushan Port, Ningbo, Zhejiang, China, on December 9, 2025. Supply chain diversification away from China is set to become a reality as businesses adjust to the risks and challenges highlighted by 2025. China’s trade surplus reached $1 trillion, reflecting global demand, despite facing a record number of trade investigations last year.

China’s share in global container shipping is on the rise, prompting the EU Chamber to recommend eliminating single-source dependencies on the U.S. and China. As businesses realize the risks of relying solely on Chinese production, more companies are looking to diversify their supply chains and investments away from China, shifting production to other markets.

The shift towards diversification does not necessarily mean reshoring, but rather “friendshoring” to countries like Mexico and Southeast Asia. Chinese supply chains are expected to become more dominant, with companies focusing on mapping their entire supply chain and partnering with Chinese firms to set up factories overseas. About half of EU Chamber members reported their China-based suppliers were shifting production to other markets.

Car companies, including those from China, are increasingly diversifying their production to other markets. Chinese companies may be ahead of their government in this trend. The need for diversification in supply chains is becoming increasingly evident as businesses seek to mitigate risks and dependencies on Chinese production.

Read more at CNBC: Supply chain diversification away from China is progressing from talks to action, EU chamber says