EU might lose 300,000 manufacturing jobs in 2026. Reason? China
What's the story
The European Union (EU) is facing a potential loss of 300,000 manufacturing jobs in the latter half of 2026. The grim prediction comes from Eurometal, an industry trade body. The organization has warned that the increasing competition from China is to blame for this trend. China currently enjoys a record €1 billion-a-day trade surplus with the EU bloc.
Protest
Eurometal to protest in Brussels
Today, Eurometal will voice its concerns in Brussels by staging a protest.
The demonstration will feature 10 symbolic coffins paraded around the European Commission headquarters.
These coffins will be inscribed with terms like "EU competitiveness," "industrial jobs," and "European factories."
The move is aimed at highlighting the potential loss of jobs and industrial competitiveness due to China's growing influence in supply chains through component sales.
Strategic intent
China aims to control key product supply chains
Alexander Julius, President of Eurometal, stressed China's strategic intent in supply chains.
He said, "China has made no secret of what it is doing. It is in their five-year plan."
He further explained that China doesn't want to be just a raw material supplier but aims to control key product supply chains. This way, it can dominate the entire value chain.
Tariff measures
EU has already taken steps against China's trade practices
The EU has already taken steps against China's trade practices. In 2024, it imposed tariffs on Chinese electric vehicle imports and in June, raised tariffs on foreign steel imports.
The bloc's trade commissioner, Maros Sefcovic, has also called the EU's annual import/export imbalance with China "not sustainable."
Both sides have agreed to three months of talks ending in October to avoid a potential trade war.
Market challenges
Rising costs for European metal manufacturers
Julius also highlighted the rising costs for European metal manufacturers due to steel import tariffs and carbon emissions taxes.
He said these levies, along with the undervaluation of the Chinese yuan, make it hard for them to compete with their Chinese counterparts.
Despite political rhetoric from Brussels, companies are still forced to meet shareholder demands and continue sourcing from China.
Job impact
Volkswagen's job cuts and China's warning
A June analysis by the European Commission predicted over one million potential job losses due to high energy costs and global competition.
This includes the 100,000 job cuts confirmed by Volkswagen last week.
Meanwhile, China has accused Europe of protectionism and threatened "resolute countermeasures should the EU further target Chinese companies or products," according to state-owned Xinhua agency earlier this year.