Chinese competition threatens 300,000 European manufacturing jobs

The European Union faces the potential loss of around 300,000 manufacturing jobs by year-end due to increasing competition from China, according to a report in The Guardian on September 6. Eurometal, a trade association, warned that unless Brussels intervenes, the job losses will escalate rapidly. Eurometal plans to protest outside the European Commission headquarters on September 7.

The association's president, Alexander Julius, emphasized that China not only seeks to supply raw materials to the EU but also aims to take control of key positions within production chains. Julius highlighted that Beijing explicitly aims to become a primary supplier of finished products as outlined in its five-year plan. Eurometal pointed out that Chinese imports of metals and chemicals pose a severe threat to European manufacturing, as these foundational materials are used in 90% of all EU manufacturing.

The group also noted that European metal producers are facing higher costs due to tariffs on steel imports and carbon emissions taxes, while components made in China face none of these levies. The undervaluation of the yuan further compounds the challenge for European producers. Eurometal stressed that the losses extend beyond manufacturing to include the long-term erosion of investments, technology, and economic resilience in Europe.

China has accused Europe of protectionism and threatened retaliatory measures if the EU continues its efforts to target Chinese companies or products. Both China and the EU have agreed to hold three months of talks, concluding in October, to try to prevent a trade war.