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EU Trade Association Blames China for Job Losses

According to a report by the British newspaper The Guardian on September 6, the European Metal Association, an EU industry trade organization, has stated that unless Brussels stops China's component manufacturers from 'colonizing' the European industry, the number of unemployed in EU manufacturing will 'soar sharply'.

According to the Eurometal association, by 2026, the European manufacturing sector will lose 300,000 jobs. However, the organization attributes this problem to "competition between the EU and China." Eurometal states that China's trade surplus with the EU has reached a record level of 1 billion euros per day (approximately 7.79 billion yuan).

On the 7th, the European Metal Association staged a drama before policymakers in Brussels—they held a demonstration with 10 symbolic coffins around the premises of the European Commission. These coffins were marked with words such as “EU competitiveness,” “industrial jobs,” and “European factories.”

European Metal Association Chairman Alexander Julius, in an interview with the British newspaper The Guardian, exaggerated the so-called 'China threat'. He stated, 'China does not want to be a raw material supplier; it wants to become a finished product supplier.' He also claimed that China aims to 'control the supply chain' in order to control the value chain.

He subsequently stated that he hopes the European Commission will "fully understand the impact of China's export of components," including imported metals and chemicals used by 90% of local manufacturing enterprises.

In fact, the European Union has already used trade measures against China. In 2024, tariffs were imposed on Chinese electric vehicles, and in June of this year, higher tariff barriers were introduced for imported steel from abroad.

EU Trade Commissioner Maroš Šefić also stated that the annual imbalance in trade between the EU and China, amounting to 360 billion euros (approximately 310 billion pounds), is unsustainable. Then, shifting gears, he mentioned that both parties have agreed to hold a three-month negotiation process in order to avoid a trade war.

Julius then turned his attention to European politicians, complaining that the loss of industrial jobs in Europe was due to their inaction. He blamed politicians for being unable to see the consequences and not investigating the "root causes of the problem." He stated that European metal companies have to bear the combined costs of import tariffs and high carbon emissions taxes.

Julius also said that components manufactured in China "do not need to face these taxes," and that the Renminbi is "undervalued," making it very difficult for European companies to compete with Chinese competitors.

However, he had to admit that regardless of the political slogans issued by Brussels, companies must be responsible to their shareholders and will continue to purchase products from China.

The European Commission's analysis in June predicted that due to high energy costs and global competition, the potential number of unemployed could exceed 1 million. This includes the job cuts of 100,000 employees announced by German car manufacturer Volkswagen last week.

In response to this series of unfounded accusations from the European side, our country has clearly stated its position. Spokesperson Mao Ning of the Ministry of Foreign Affairs emphasized that the essence of Sino-European economic and trade relations is mutual benefit and win-win results. China never deliberately pursues a trade surplus with Europe. International trade is based on bilateral choices, and there is no forced buying or selling. Whether it is "risk reduction," "dependence reduction," or the so-called "trade balance," these are actually forms of protectionism. Our country also clearly warned that it will closely monitor the actions of the European side and take necessary measures to protect its legitimate rights and interests.