European companies are considering moving supply chains out of China as tighter export controls increase uncertainty, reported Reuters. The European Union Chamber of Commerce in China said firms are seeking protection from fallout linked to the US-China trade war.

The chamber said one-third of its members are looking to shift sourcing away from China. In a flash survey, 40 per cent of respondents reported that the commerce ministry is processing export licences more slowly than promised.

Jens Eskelund, president of the chamber, said the controls have heightened uncertainty for European businesses operating in China. He warned companies face risks of production slowdowns or even stoppages as a result.