EU Manufacturing Threatened by Chinese Component Surge, Industry Body Warns

Eurometal, a leading European metal-industry association, warns that 300,000 manufacturing jobs could disappear in the EU during the remainder of 2026 as Chinese component makers expand their presence in supply chains. To draw attention, Eurometal will stage a procession of ten symbolic coffins around the European Commission headquarters, each bearing slogans such as “EU competitiveness” and “industrial jobs.”

The Guardian

President Alexander Julius says Chinese firms are pursuing a strategy outlined in Beijing’s five-year plan to dominate finished-product supply chains, not merely supply raw materials. He argues that Chinese components are exempt from EU tariffs and benefit from an undervalued yuan, making them “hard to compete with.”

The Guardian

The European Union has already responded to Chinese competition in specific sectors, imposing tariffs on Chinese electric-vehicle imports in 2024 and raising duties on foreign steel in June. Trade commissioner Maroš Šefcovic described the EU’s €360 billion annual trade imbalance with China as “not sustainable” and noted that three months of talks, set to conclude in October, aim to avoid a trade war.

The Guardian

China’s state-run Xinhua agency warned of “resolute countermeasures” should the EU further target Chinese companies, while the European Commission’s June analysis projected potential job losses of over 1 million across the bloc, citing high energy costs and global competition.

The Guardian

• “You look at the job losses stacking up in industries in places like Germany. The media, the politicians can see the consequences, but they don’t go after the virus that is causing it,” — Alexander Julius, the president of Eurometal

The Guardian

• “When manufacturing leaves Europe, Europe not only loses production but investment, knowhow and long-term economic resilience,” — Eurometal, the president

The Guardian