Industry leaders warn that the EU could face 300,000 factory job cuts in the remainder of 2026 unless action is taken to address the growing influence of Chinese component manufacturers. Eurometal, a leading trade body, has predicted the job losses due to expanding competition from China, which currently enjoys a record €1bn-a-day trade surplus with the bloc. The organisation plans to bring its concerns to decision-makers in Brussels by staging a protest using 10 symbolic coffins marked with phrases such as 'EU competitiveness', 'industrial jobs', and 'European factories'.

Alexander Julius, president of Eurometal, told the Guardian that China has made no secret of its strategy, which is outlined in its five-year plan. He explained that China aims to be a finished product supplier rather than just a raw material provider, seeking to control key supply chains to dominate the value chain. Julius emphasized the need for the European Commission to fully understand the impact of Chinese exports at the component level, including metals and chemicals used in 90% of manufacturing. He argued that the EU must address the challenges posed by Chinese competition, which includes the absence of tariffs and carbon emissions taxes on Chinese components, combined with the undervaluation of the yuan.

The EU has already taken steps to counter Chinese competition, including imposing tariffs on electric vehicle imports in 2024 and higher tariffs on foreign steel in June. The bloc’s trade commissioner, Maroš Šefčovič, has also highlighted the EU’s €360bn (£310bn) annual import/export imbalance with China as unsustainable. Both sides have agreed to hold three months of talks, ending in October, to avoid a trade war. Julius criticized the lack of political action, noting that while media and politicians can see the consequences of job losses in Germany, they do not address the underlying causes, such as companies relocating to China or India or going out of business.

The European Commission’s analysis in June projected potential job losses of more than 1m due to high energy costs and global competition, including the 100,000 job cuts at Volkswagen confirmed by the German carmaker. China has accused Europe of protectionism and threatened 'resolute countermeasures' if the EU targets its companies or products. However, the EU and China have agreed to a three-month truce. Julius stressed that companies must satisfy shareholders, leading them to continue sourcing from China despite political rhetoric. He warned that the loss of manufacturing in Europe would result in the loss of production, investment, knowhow, and long-term economic resilience.

Eurometal’s protest highlights the growing concerns over the impact of Chinese supply chain integration on European industries. The organisation’s call for action underscores the need for the EU to address the structural challenges posed by Chinese competition, including the lack of levies on Chinese components and the undervaluation of the yuan. As the EU and China continue their talks, the industry remains concerned about the long-term implications of the 'colonisation' of supply chains and its effect on European manufacturing and employment.