The European Union could lose about 300,000 jobs in manufacturing by the end of the year because of intensifying competition from China. That warning came from Eurometal, a leading European steel and metals trade association.
According to the group, job cuts will accelerate unless Brussels stops the “colonisation” of European supply chains by Chinese component makers. China already runs a record trade surplus with the EU of about €1 billion a day. European companies are being forced to buy cheap Chinese parts, in part because of an undervalued yuan and because Chinese suppliers do not face the carbon levies that weigh on producers inside the EU.
Eurometal president Alexander Julius said Beijing is openly pursuing this strategy under its five-year plan: China does not want to remain a raw-materials supplier; it wants to occupy key links in supply chains and control the entire value chain.
The association says imports of metals and chemicals from China pose a particular threat, as these materials are used in roughly 90% of manufacturing processes. European producers also warn of growing dependence on Chinese components, which is undermining the competitiveness of local plants.
On 7 September, Eurometal will stage a protest outside the European Commission headquarters in Brussels. Participants will carry ten symbolic coffins labelled “EU competitiveness,” “industrial jobs” and “European factories.”
The EU has already raised tariffs on steel imports and earlier imposed duties on Chinese electric vehicles. Trade Commissioner Maroš Šefčovič has called the bloc’s trade imbalance with China (€360 billion a year) unsustainable. The two sides are holding three months of talks due to conclude in October.
