A major European manufacturing trade organization has raised alarm about accelerating job losses in the sector, attributing the decline to intensifying competition from Chinese manufacturers. The group projects 300,000 manufacturing positions will be eliminated by the end of this year alone, driven by China’s expanding economic presence in EU markets, which currently generates a record €1bn daily trade surplus with the bloc.
The trade body plans to present its case to European Commission officials on Monday through a symbolic demonstration featuring coffins marked with phrases such as “EU competitiveness,” “industrial jobs,” and “European factories.” Industry leaders argue that policymakers have not adequately grasped the scope of Chinese penetration into European supply chains, particularly at the component manufacturing level. They contend that Chinese firms are strategically embedding themselves across sectors that depend on metals, chemicals, and other inputs used in roughly 90% of manufacturing processes.
According to industry representatives, China’s strategy is explicitly documented in its five-year planning, with the goal of progressing from raw material supply to dominance in finished product chains and key supply chain positions. Leadership within the trade organization emphasized that once Chinese firms control supply chains, they effectively command the entire value chain structure. The European Union has previously responded to such concerns by implementing tariffs on Chinese electric vehicles in 2024 and raising levies on steel imports in June.
Manufacturers point to several structural disadvantages hampering European competitiveness. Chinese components imported into Europe face none of the tariffs or carbon emissions taxes imposed on European metal producers in high-energy sectors. Additionally, the undervaluation of China’s currency relative to the euro creates further pricing pressures. An earlier European Commission analysis from June projected potential job losses exceeding 1m across the manufacturing sector stemming from elevated energy costs and international competition.
EU and Chinese officials have agreed to three months of negotiations set to conclude in October, aimed at preventing an escalation of trade tensions. China has previously characterized European trade measures as protectionist and has warned of potential countermeasures against EU actions targeting Chinese companies or products.
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