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What does it take to make production in Europe attractive again?

The COVID-19 brought two contradictory point of views with regard to risk of sourcing in Asia, or in very far regions.

  1. For the first time in recent history risks of far sourcing impacted companies heavily and almost everybody agrees, that less companies will manage their risks based on "hope that nothing happens"

  2. On the other hand experts note, that in many areas there is no way to replace Chinese suppliers, because simply their production scale have no match in Europe by far and production here would be much more expensive therefore

It is certainly true what experts say - the scale in certain products and categories in Chine is higher by order of magnitude. In a production based on intensive human labor and low automation there was no fight to this. Now I am coming to a vicious circle the European production is in:

  1. if bigger volumes were produced in Europe, it would be even more motivating and ROI would be higher to invest into production automation

  2. if the European production would be more automated, costs would be lower and more volumes would be produced in Europe (motivation to source overseas would be lower)

How to break this vicious circle? How about EU supports more competitive ideas rather than conserve uncompetitiveness through its subsidies?

Of course - this is not solution for everything, we don't get all overseas sources back home. I just struggle to believe Europe is so powerless it puts itself voluntarily into dependent role with China.

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