Fears of new China shock as EU industry’s reliance on imports grows
The EU is facing a potential new 'China shock' as its reliance on imported components from China increases, raising concerns about job losses and the impact on local industries. Trade analysts warn that this growing dependency could lead to the cannibalisation of European factories, reminiscent of past economic crises. Urgent discussions among European commissioners are set to address these challenges and explore measures to mitigate the risks.
- ▪The EU's reliance on Chinese components is growing, prompting fears of job losses and industry displacement.
- ▪Trade analysts highlight that the undervaluation of the yuan and state subsidies make Chinese products more competitive.
- ▪Recent data indicates that a significant portion of EU imports for critical ingredients comes from China, raising concerns about the sustainability of local production.
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Electric vehicles for export and containers at a port in Shanghai. Photograph: China Daily/ReutersView image in fullscreenElectric vehicles for export and containers at a port in Shanghai. Photograph: China Daily/ReutersInternational tradeFears of new China shock as EU industry’s reliance on imports growsRising volume of components imported from China prompts warning of cannibalisation of European industriesLisa O’CarrollTue 19 May 2026 02.00 EDTSharePrefer the Guardian on GoogleEurope is facing a fresh China shock that threatens to cannibalise local factories, leading to job losses and de facto colonisation of industry by Beijing, trade analysts and representatives have said.They fear the plunging exchange rate and support for Chinese “zombie firms” has echoes of the crisis in the US 25…
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