EU industry warns of 300,000 manufacturing job cuts as Chinese component dominance escalates

A leading EU trade association has cautioned that job losses in the bloc’s manufacturing sector will accelerate unless Brussels curbs the growing influence of Chinese component makers.

Eurometal forecasts more than 300,000 job losses across the manufacturing industry for the remainder of 2026, citing intensifying competition from China, which currently records a daily trade surplus of roughly €1 billion with the EU.

On Monday, Eurometal will present its concerns to EU decision‑makers by staging a protest featuring ten symbolic coffins carried in a procession around the European Commission’s headquarters. The coffins will be inscribed with phrases such as “EU competitiveness”, “industrial jobs” and “European factories”.

European manufacturers argue that the Commission is not fully recognising how Chinese firms are becoming embedded in supply chains through the sale of components, threatening domestic industry.

Alexander Julius, Eurometal’s president, told the Guardian: “China has made no secret of its ambitions. It is outlined in their five‑year plan. They do not want to be a raw‑material supplier; they aim to supply finished products. By controlling key product supply chains they can dominate the entire value chain.” He urged the Commission to grasp the full impact of Chinese exports at the component level, including metals and chemicals that are used in 90 % of manufacturing processes.

The EU has already imposed tariffs on Chinese electric‑vehicle imports and raised duties on foreign steel in 2024, while Trade Commissioner Maroš Šefčovič has described the bloc’s €360 billion annual trade imbalance with China as unsustainable. The two sides have agreed to three months of talks, concluding in October, to prevent a broader trade conflict.

“The job losses stacking up in European industries, particularly in Germany, are evident to the media and politicians, yet they fail to address the root cause,” Julius said. “They do not examine why companies are relocating to China or India, or why some are collapsing.”

European metal producers face additional pressures from steel‑import tariffs and carbon‑emission taxes imposed on energy‑intensive sectors. In contrast, Chinese components incur none of these levies, and the undervaluation of the yuan further hampers European competitors.

Corporate pressures to satisfy shareholders mean that firms will continue sourcing from China, regardless of political statements from Brussels, he added.

“When manufacturing leaves Europe, the region loses not only production but also investment, know‑how and long‑term economic resilience,” Eurometal warned ahead of the protest.

A June analysis by the European Commission projected potential job losses exceeding one million, driven by high energy costs and global competition. This includes the 100,000 job cuts recently announced by Volkswagen.

China has accused Europe of protectionism and warned of “resolute countermeasures” should the EU further target Chinese firms or products, according to the state‑owned Xinhua agency. A temporary truce has been in place since the announcement, with talks ongoing.

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