Europe could lose 300,000 industrial jobs as competition from China intensifies
Chinese flag (photo: Getty Images)
The EU risks losing around 300,000 industrial jobs by the end of the year due to growing competition from China. European manufacturers are also warning of increasing dependence on Chinese components, The Guardian reports.
The industry association Eurometal said that Chinese manufacturers are gradually strengthening their control over supply chains, including through exports of finished products and components needed by European industry.
According to the association, without changes to current policies, Europe could face a rapid increase in industrial job cuts.
Eurometal President Alexander Julius said that China's industrial expansion is effectively leading to the "colonization" of European manufacturing supply chains.
Why European manufacturers are losing to China
Eurometal says one of the main problems is the difference in costs. Chinese companies have an advantage due to lower costs, including the absence of tariffs and carbon charges comparable to those in Europe.
At the same time, China is actively increasing exports of products used in the production of metals, chemicals, and other goods. According to Eurometal, these components are needed for approximately 90% of industrial production.
Europe's trade imbalance with China has already reached around €360 billion a year. According to The Guardian, China currently has a record trade surplus with the EU of around €1 billion a day.
Protest planned in Brussels
Against this backdrop, representatives of European industry are planning to hold a protest in Brussels. Ten symbolic coffins will be used to demonstrate the threat to European manufacturing and jobs.
The EU has already introduced individual trade measures against Chinese products, including tariffs on electric vehicles and steel. However, Eurometal believes these steps are insufficient to address the problem.
The European Union and China are currently holding talks on trade imbalances. At the same time, European manufacturers are calling on Brussels to act faster to preserve the competitiveness of European industry.
Another indication of the scale of the problem was Volkswagen's decision to cut around 100,000 jobs by 2030. The company has linked the restructuring, among other factors, to growing competition from Chinese automakers.
China also trades successfully with Russia, making money from sales of drone components that are later used to attack Ukraine.
It was reported that the Chinese state-owned company Jilin Chemical Fiber Group may have supplied Russia with materials needed to produce hundreds of kamikaze drones.
