EU faces growing pressure from Chinese imports | JINHANFAIR trade news

2026.09.23

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The European Union is facing a changing economic challenge from China as Chinese manufacturers move beyond labour-intensive goods and increasingly compete in sectors central to European industry.

While the first "China shock" followed China's 2001 entry into the World Trade Organization and primarily affected textiles, clothing, footwear, furniture and toys, a second wave is now emerging across machinery, electronics, chemicals, batteries and vehicles. China's machinery and electronics exports increased from 31.9% of its goods exports in 2001 to 41.8% in 2024. At the same time, Chinese companies are increasingly building production capacity inside Europe, bringing investment, employment and local supply-chain opportunities. The shift has created divisions within the EU over how to balance protection against low-cost imports with the benefits of Chinese investment.