Eurometal warns of 300,000 EU manufacturing job losses amid Chinese competition

Eurometal has warned that European manufacturing will suffer 300,000 job losses in the remainder of 2026 unless Brussels addresses what it describes as the colonisation of industry by Chinese component manufacturers. The leading industry trade body attributes these projected cuts to expanding competition from China, which currently enjoys a record trade surplus with the bloc of one billion euros per day. To highlight the severity of the situation, Eurometal will stage a protest in Brussels on Monday, featuring a procession of ten symbolic coffins around the European Commission headquarters. The coffins will bear phrases such as EU competitiveness, industrial jobs and European factories, symbolising the struggling state of the sector.

Alexander Julius, the president of Eurometal, stated that China has openly declared its intention to move beyond being a raw material supplier to becoming a provider of finished products. He argued that Chinese firms aim to embed themselves in key product supply chains, noting that controlling the supply chain effectively means owning the complete value chain. Julius urged the commission to fully understand the impact of Chinese exports at the component level, particularly in metals and chemicals, which are used in 90% of manufacturing. He criticised current political responses for failing to address the root cause of the problem, describing the situation as a virus that is not being treated. He pointed out that while media and politicians observe the consequences of job losses in countries like Germany, they do not investigate why companies are relocating to China or India, or why they are going bust.

European manufacturers face increasing costs due to tariffs on steel imports and carbon emissions taxes in high-energy sectors. Julius noted that components manufactured in China do not face these levies, and combined with the undervaluation of the Chinese yuan, this makes it difficult for European rivals to compete. He added that companies must satisfy shareholders and will continue to source from China regardless of political rhetoric from Brussels. Eurometal warned that when manufacturing leaves Europe, the continent loses not only production but also investment, know-how and long-term economic resilience. This warning comes as the European Commission projected in June that more than one million jobs could be lost due to high energy costs and global competition, a figure that includes the 100,000 job cuts recently confirmed by Volkswagen.

The EU has already taken measures to protect its industries, including imposing tariffs on Chinese electric vehicle imports in 2024 and raising tariffs on foreign steel in June. Trade commissioner Maros Sefcovic has described the bloc’s 360 billion euro annual trade imbalance with China as unsustainable. Both sides have agreed to hold three months of talks ending in October to avert a trade war. China has accused Europe of protectionism and threatened resolute countermeasures if the EU further targets Chinese companies or products, according to the state-owned Xinhua agency. Since these threats, the EU and China have agreed to a three-month truce.