China’s economic moves are causing trouble for EU industries, experts have warned. Beijing’s efforts to rely less on the West for trade by boosting its own manufacturing and technology are making things tough for European businesses.
Before the EU even talked about reducing ties with China, Beijing was already trying to rely less on Western markets.
But this has led to fewer imports from China, like solar panels and electric cars, which has made prices drop worldwide. European leaders and businesses are accusing China of “dumping” goods, meaning selling them below cost.
Alicia García-Herrero, a senior fellow at a think tank in Brussels, says China’s focus on securing its own supply chains means fewer European products are sold there.
This is hitting countries like Germany hard, which rely a lot on selling goods abroad.
Plus, because Chinese people aren’t buying as much, prices are dropping globally, making it harder for European products to compete.
Philip Lausberg, an analyst, calls China’s strategy “neo-mercantilist”, saying it’s bad for Europe because China wants to produce everything itself, hurting European exports.
Recent numbers show EU industries are struggling, with industrial output falling by 5.7 percent in January and nearly one million manufacturing jobs lost in the past four years.
The EU Chamber of Commerce in China says the situation is like a slow train crash in EU-China relations. They’re calling for talks between the EU and China to fix the problem.
Meanwhile, at a forum in China, the IMF chief urged China to focus more on its own people buying things, but some doubt China will listen.
As tensions rise between China and the West, including Europe, experts say it’s part of a bigger picture of countries becoming more protective of their own interests.
