EU manufacturers could give up on competing with China by 2030, warns commerce chief
Summary
Jens Eskelund, head of the European Union Chamber of Commerce in China, warned that European manufacturers may stop trying to compete with Chinese firms by 2030 if current trends continue. He urged European policymakers to consider helping local companies join Chinese supply chains, as European industries face rising competition and the risk of job losses.Key Facts
- Eskelund said some European companies in China are considering a shift from making goods for China to making goods in China for global markets.
- The article reports that the EU’s trade deficit with China has reached £1bn (€1.18bn) a day.
- A Goldman Sachs report cited by Eskelund forecasts Chinese exports could reduce EU GDP by 0.5% and German GDP by up to 0.9% by the end of the decade.
- Eskelund warned that a decline in European manufacturing could lead to mass job losses, a smaller tax base and higher social benefit costs.
- European car, chemical and renewable energy industries are already facing pressure from Chinese competition, according to the article.
- BMW reported that its sales in China fell 22% in the first nine months of the year and issued its second profit warning of the year.
- Eskelund said China’s plans to reduce reliance on imports have appeared in its five-year plans since its Made in China strategy began in 2015.
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