European industry is under growing pressure from Chinese manufacturers, and, according to the industry association Eurometal, without a change in the EU's current trade policy the bloc could lose around 300,000 jobs in the manufacturing sector by the end of the year. The warning came against a backdrop of rising dependence of European firms on Chinese components and finished products, which are increasingly displacing local offerings on the market.
“Colonization” of European supply chains
Eurometal argues that Chinese companies are gradually tightening their grip on supply chains, exporting both finished goods and the components without which European industry cannot function. According to the association, these components are essential for roughly 90% of industrial production in the EU. Eurometal President Alexander Julius described Chinese industrial expansion as a de facto “colonization” of European supply chains, stressing that without countermeasures, job cuts in the sector could snowball.
A trade imbalance of 360 billion euros
The association cites the cost gap as the key factor behind the uneven competitive playing field: Chinese firms operate at lower costs, in particular due to the absence of tariffs and carbon payments comparable to those in Europe. The scale of the problem is underscored by the trade imbalance: Eurometal estimates it has already reached around €360 billion per year, while, according to The Guardian, China is recording a record trade surplus with the EU of roughly €1 billion per day. At the same time, China is ramping up exports of goods used in the production of metals, chemicals and other products.
Protest in Brussels and symbolic coffins
Against this backdrop of mounting pressure, representatives of European industry plan to stage a protest action in Brussels. The event will feature ten symbolic coffins intended to vividly demonstrate the threat to European manufacturing and jobs. Organizers believe that previous targeted measures — including the tariffs already imposed on electric vehicles and steel — are insufficient to address the systemic problem, and they are calling on Brussels to act faster while industry still retains its competitiveness.
Talks and a wave of layoffs: the Volkswagen example
The EU and China are currently negotiating over trade imbalances, but European manufacturers are insisting on more decisive and swift action. A further signal of the crisis's scale was Volkswagen's decision to cut around 100,000 jobs by 2030: the company directly links the restructuring to intensifying competition from Chinese carmakers. In the broader context, analysts also note that China continues to trade actively with Russia, including supplying components and materials used in the production of drones, which adds to the overall pressure on Europe's industrial and defense ecosystem.
