EU Chamber Head Warns European Manufacturing Faces Existential Crisis
Jens Eskelund warns that European manufacturers may stop competing with Chinese firms by 2030, risking mass job losses and a collapsed tax base.
The head of the European Union Chamber of Commerce in China, Jens Eskelund, warned European Commission officials in Brussels that European manufacturers face an existential crossroads. He cautioned that current trends could lead to a collapse of the European tax base and mass job losses if manufacturing disappears, predicting that some European firms may stop attempting to compete with Chinese counterparts by 2030.
Eskelund highlighted the struggles of the German automotive industry, which is facing reduced profits in China and intense competition from firms such as BYD, Geely, and SAIC Motor. He noted a strategic shift where European companies are moving from a "Made in China for China" philosophy to "Made in China for the world," integrating into Chinese supply chains to maintain global competitiveness.
Criticizing the idea that increasing exports can solve trade imbalances as "fantasy," Eskelund urged EU leaders to engage with Beijing to ensure mutual value. He emphasized that China's focus on self-reliance is clearly outlined in its five-year plans. This warning aligns with a forecast from Goldman Sachs Private Wealth Management, which predicts Chinese exports could lower the European Union's GDP by 0.5% by 2030.
