Jobs are disappearing in the European Union because of China. What does this mean?
Cheap imports increase the pressure on European producers, who simultaneously face high energy prices, carbon costs and more expensive raw materials. The problem goes beyond individual industries: The reduction of production in metallurgy, automotive industry, chemical industry and the green technology sector increases the risk of further deindustrialization of the EU. Brussels is trying to protect the domestic market with duties and new supply chain requirements, but without reducing the costs of European industry, these measures can only slow down the loss of competitiveness. How competition with China is destroying the European economy — in the Izvestia article.
Loss of jobs
• European industry may lose about 300,000 jobs by the end of 2026 if the EU does not limit the growing presence of Chinese component manufacturers. China is already enjoying a record trade surplus with the European Union of about €1 billion per day. Chinese companies are gradually gaining key positions in European supply chains through the export of parts, metals and chemical products used in about 90% of production.
• China seeks to control not the supply of raw materials, but the production of finished products and the most important stages of supply chains. The European authorities see the closure of enterprises and job cuts, but they do not pay enough attention to the causes of what is happening. As a result, companies are shifting production to China and India or shutting down operations.
• European manufacturers are further hampered by high costs: they pay steel duties and carbon taxes, while Chinese components do not incur such costs. The situation is aggravated by the low exchange rate of the yuan, which makes it more difficult to compete with Chinese suppliers. At the same time, companies continue to purchase parts in China, as they must take into account the interests of shareholders.
• In June, the European Commission estimated possible job losses due to expensive energy and international competition at more than 1 million. The EU has already imposed tariffs on Chinese electric vehicles in 2024, and in June 2026 increased duties on imports of foreign steel. The annual trade imbalance with China reaches about 360 billion euros. Brussels and Beijing have agreed to hold three-month talks until October to avoid a trade war.
Industries under attack
• European industry is facing several challenges at once: high energy prices, carbon taxes, and expensive imports of raw materials. At the same time, Chinese companies offer cheaper parts and finished goods. An additional advantage of China is the low exchange rate of the yuan. Due to the difference in costs, European enterprises are losing their competitiveness, and part of the production is being transferred to China and other regions.
• In addition to metallurgy, the automotive industry is under strong pressure. Chinese manufacturers of electric vehicles and components control a significant part of the supply chain, from lithium to batteries. As a result, the demand for EU auto sector workers decreased by 55%. Volkswagen has already confirmed plans to cut about 100,000 jobs by 2030, and other major automakers are also making large-scale optimizations.
• Problems have also affected the chemical industry. Between 2019 and 2024, the demand for labor in the chemical industry decreased by about 95%. Another vulnerable segment is the production of equipment for "green" energy. Over 80% of the solar panels used in the EU come from China, and European manufacturers have practically disappeared from this market. Beijing is also strengthening its position in industrial automation: imports of Chinese robots to the EU increased by 315%, creating additional pressure on local developers.
Retaliatory measures
• The European Union is strengthening the protection of its own market amid a growing trade imbalance with China. Duties are becoming one of the main decisions. Additional tariffs of up to 35.3% above the base rate of 10% apply to Chinese electric vehicles. Protective and anti-dumping measures also apply to certain types of metal products, where the rates reach about 25%.
• Separate measures are aimed against cheap online supplies through Shein, Temu and AliExpress. Starting from July 1, 2026, the EU abolished the duty-free regime for shipments worth up to €150. Now €3 is charged for each product category in a small package. From November 1, 2026, another registration fee is planned — about €2. At the same time, marketplaces must independently be responsible for taxes and compliance with European requirements.
• The European Commission is also preparing new initiatives that should reduce the dependence of critical industries on a single source of supply. In particular, the new requirements require the use of at least three suppliers from different countries to purchase key components. At the same time, the Industrial Accelerator Act provides for limiting the participation of Chinese companies in EU government tenders and strengthening control over the purchase of European technology enterprises by Chinese investors.
• At the same time, Brussels is trying not to bring the confrontation to a full-fledged trade war and continues negotiations with Beijing. In particular, because Europe is forced to adapt to the unpredictable economic policies of US President Donald Trump.
What does this mean?
• The risk of deindustrialization is increasing in the EU, so in the coming years Brussels will have to accelerate the protection of European production, otherwise companies will move their capacities outside the EU, and the region will lose investment, technology and qualified personnel. Future prospects depend on Europe's ability to reduce energy costs, align conditions for imported and European products, and preserve key industrial chains within the continent.
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