Business · Trade · 2 hrs ago
EU manufacturers may struggle to compete with China by 2030, commerce chief warns
Jens Eskelund, head of the EU Chamber of Commerce in China, warned that European manufacturers may struggle to compete with Chinese firms by 2030.
He said some European companies in China are considering making goods there for markets around the world, rather than only for Chinese customers.
The warning comes as Chinese exports grow and the EU-China trade deficit reaches a record level, according to Eskelund.
He said European governments may need to let local manufacturers join Chinese companies’ supply chains instead of treating them only as rivals.
A Goldman Sachs forecast cited by Eskelund says Chinese exports could lower the EU’s GDP by 0.5% by the decade’s end and Germany’s by as much as 0.9%.
He warned that a decline in European manufacturing could mean mass job losses and lasting damage to communities and public finances.
The pressure is already affecting sectors including cars, chemicals and renewable energy, and Eskelund has been meeting European Commission officials in Brussels to share his concerns.
Jens Eskelund, head of the European Union Chamber of Commerce in China, warned that European manufacturers could give up trying to compete with Chinese counterparts by 2030 if current trends continue.
He said European companies could shift from making products in China for the Chinese market to making them there for the world.
Eskelund warned that Chinese exports could reduce the EU’s gross domestic product by 0.5% by the end of the decade, according to a Goldman Sachs report.
He said Europe’s car, chemicals and renewable energy sectors were already feeling pressure from Chinese competition.
He warned that a loss of European manufacturing could bring job losses, weaken tax revenues and increase social costs.
- Who
- Jens Eskelund, head of the European Union Chamber of Commerce in China, issued the warning.
- What
- He warned that European manufacturers could give up trying to compete with Chinese counterparts by 2030 if current trends continue.
- When
- By the end of the decade, if current trends continue.
- Where
- Eskelund made the comments in Brussels.
- Why
- He said Chinese competition and exports could damage European industry and reduce economic value for the EU.
This story does not have two clearly opposing sides.
Beijing agreed its Made in China strategy.
The China import expo in Shanghai highlighted the latest five-year plan.
BMW sales in China fell 22%.
A Goldman Sachs report forecasts Chinese exports could reduce EU GDP by 0.5%.
- Warning
- European manufacturers could give up competing with China by 2030
- EU GDP forecast
- 0.5% reduction by the end of the decade
- Germany GDP forecast
- Up to 0.9% reduction
- BMW sales in China
- Down 22% in the first nine months of the year
- Made in China strategy
- Agreed in 2015
What people are saying
What is the point of trading?
if China’s trade delivers negative value, why trade?
If we create new dependencies, ultimately that might result in Europe losing its ability to determine its own future
I don’t really like the term China shock 2.0 because these things that are happening should not be a shock because it is all written in their five-year plans so you should be able to anticipate that