European Chamber Flash Survey Impact of Middle East Conflict on European Business

To better understand the impact of the Middle East conflict on its member companies, the European Union Chamber of Commerce in China conducted a flash survey from 27 April to 10 May 2026.

Most respondents (79%) reported that the Middle East conflict has had some level of negative impact on their China operations (with this being minor for 35%, moderate for 33% and significant for 11%). Of those negatively impacted:

.  81% reported difficulties sourcing inputs from the region (with this being minor for 36%, moderate for 37% and significant for 8%), which has already resulted in production stoppages for some, with more anticipated in the coming six months;

.  two-thirds are facing logistics challenges, primarily related to the cost of transport and longer transport times;

.  energy-related costs have increased for two-thirds; and

.  just over three in ten have seen demand for their company’s products/services decrease.

Several members have already taken, or are planning to take, action as a result:

.  Over a quarter (28%) have adjusted their China supply chain strategies, a figure that jumps to 64% of those surveyed in the chemicals and petroleum sector.

.  One in five have already adjusted, or are considering adjusting, their China investment plans. This trend is most prominent in professional services, with 7% of respondents having already cancelled their China investment plans and 13% putting such plans on hold until the Middle East situation stabilises.

Download of the survey here ...