Eurometal, a major European trade group says Europe could lose 300,000 factory jobs by the end of 2026. Eurometal blames growing competition from China for the potential job losses. China currently has a record trade gap in its favor of about €1 billion a day.
Eurometal plans to protest in Brussels on Monday to make its concerns heard. The group will carry ten coffins in a march around the European Commission headquarters. Each coffin will have a different phrase written on it like “EU competitiveness,” “industrial jobs,” and “European factories.”
European manufacturers worry that EU officials do not fully understand how deeply Chinese companies have worked their way into European supply chains. Chinese firms increasingly sell parts and materials that European factories then use to build finished products.
Alexander Julius, the president of Eurometal, spoke openly about China’s strategy. He said China has made its plans clear through its five-year economic plan. Julius said China no longer wants to only sell raw materials. Instead, it wants control over entire supply chains for finished products. He said controlling the whole chain means controlling the whole value behind it.
Julius wants EU leaders to look closely at how much China’s exports affect Europe at the component level. He pointed out that Chinese metals and chemicals are now used in about 90 percent of European manufacturing.
The EU has already taken some action. Officials placed tariffs on Chinese electric vehicles in 2024 and raised tariffs on foreign steel imports in June. EU Trade Commissioner Maroš Šefčovič has warned that the Europe’s annual €360 billion trade gap with China unsustainable. Both sides agreed to hold talks for three months through October to try to avoid a bigger trade war.
Julius said leaders can see job losses growing in countries like Germany but are not addressing the real cause. He said companies are quietly moving their work to China or India, while others are shutting down without explaining the reasons.
He also pointed to extra costs that European manufacturers have to pay while their Chinese competitors do not. European steel makers face tariffs on imported materials and taxes linked to carbon emissions. Chinese manufacturers do not face these same costs. Julius also said China’s currency remains undervalued, making it harder for European companies to compete on price.
Julius said companies must still make decisions that protect their shareholders. He expects many businesses to keep choosing cheaper Chinese parts, even if EU leaders speak out against it.
Eurometal’s warning goes beyond just the 300,000 figure. The group estimates over 13 million jobs directly connected to European manufacturing remain at risk, with about 65 million more jobs indirectly connected across the wider economy.
The European Commission did its own analysis in June and estimated that more than one million jobs could be lost. It said high energy costs and global competition are the main causes. The figure includes 100,000 job cuts recently confirmed by German carmaker Volkswagen.
Meanwhile, China rejects the allegation and says Europe is using unfair trade policies to protect its own industries. Chinese state media has also warned that China will respond strongly if the EU places more restrictions on Chinese products or companies. This is happening as both sides are also trying to continue the trade deal.
