China 'Conquering' Europe, 300,000 Workers Threatened with Redundancy

Jakarta, CNBC Indonesia – Europe’s manufacturing industry has been warned it faces an ever-larger wave of redundancies unless the European Union acts swiftly to stem the penetration of Chinese component producers into the region’s industrial supply chains.

Eurometal, an industry trade association, estimates that around 300,000 manufacturing jobs will be lost through the remainder of 2026 due to intensifying competitive pressure from China. This comes as China records a trade surplus with the European Union at a record of roughly €1 billion per day.

Eurometal will take its concerns directly to the EU’s policy-making centre in Brussels on Monday (7/9/2026). It plans to stage a symbolic action, carrying ten coffins in a procession around the European Commission’s headquarters.

The coffins will bear inscriptions such as ‘EU competitiveness’, ‘industrial jobs’ and ‘European factories’.

The action reflects European producers’ concern that the European Commission has not fully grasped the impact of Chinese products on local industry. Chinese producers are seen as becoming increasingly entrenched in European supply chains through the sale of various components used by the manufacturing industry.

Eurometal President Alexander Julius told The Guardian that China’s expansion into global supply chains is not being done quietly.

‘China is not keeping secret what it is doing. It is written down in their five-year plan,’ he said.

‘China does not want to be a supplier of raw materials; they want to be a supplier of finished products. They want to be in the supply chains of key products because they know that once they control the supply chain, they control the entire value chain,’ he added.

According to Julius, the European Commission needs to fully understand the impact of Chinese exports at the component level. This includes metals and chemicals used in around 90% of manufacturing activity.

European Industry Squeezed by Costs

The European Union has in fact already taken a number of steps to protect its industry from Chinese competition.

In 2024, the bloc imposed tariffs on imported Chinese electric vehicles. Then, in June 2026, the EU raised tariffs on foreign steel imports.

EU Trade Commissioner Maros Sefcovic had also previously stated that an annual trade imbalance with China of €360 billion is unsustainable. Both sides have now agreed to hold three months of talks until October in an effort to avert a larger trade conflict.

However, Julius believes these measures have not addressed the root causes of European industry’s loss of competitiveness and jobs.

‘You see redundancies piling up in industries in places like Germany. The media and politicians can see the consequences, but they are not hunting down the virus that causes it,’ Julius said.

‘They are not looking at why it is happening or asking why companies choose to relocate to China or India, or go bankrupt.’

According to him, one factor enabling the spread of this ‘virus’ is the rising cost burden borne by European metal producers.

The metals industry faces tariffs on steel imports alongside carbon emissions taxes, particularly because the sector requires vast amounts of energy.

By contrast, components produced in China do not face equivalent charges.

Julius said this difference in cost burden, combined with the Chinese currency, the yuan, being considered undervalued, makes it increasingly difficult for European companies to compete with Chinese producers.

He also believes companies will continue buying components from China regardless of the political rhetoric emanating from Brussels about reducing dependence on Beijing.

‘Companies have to serve their shareholders’ interests and will keep buying from China, whatever political rhetoric comes out of Brussels,’ he said.

Eurometal stressed the issue is not merely about the short-term loss of European production capacity.

‘When manufacturing leaves Europe, Europe loses not only production but also investment, knowledge and long-term economic resilience,’ Eurometal said ahead of the protest.

Industrial Job Losses Could Exceed One Million

Pressure on Europe’s manufacturing sector is also evident in a European Commission analysis published in June. The institution estimated that more than one million jobs could be lost due to high energy costs and global competition.

The projection includes the impact of Volkswagen’s workforce reduction plan. The German carmaker last week confirmed plans to cut around 100,000 jobs by 2030.

For its part, China has repeatedly accused the European Union of pursuing protectionist policies to shield its own industry.

Earlier this year, China’s state news agency Xinhua reported that Beijing threatened to take ‘resolute retaliatory action if the EU continues to target Chinese companies or products’.

Nevertheless, trade relations between the two sides subsequently entered a period of truce after the EU and China agreed to a three-month standstill.