Some European manufacturers are considering using China as an export base, Jens Eskelund, head of the European Union Chamber of Commerce in China, told The Guardian, warning of job losses if current trends continue.
Eskelund said member companies were exploring overseas demand amid a saturated market in China. Some are weighing a model that would use Chinese production networks to make goods for international customers, in some cases with Chinese partners. “Be in China, for the world,” he said.
For some companies, access to those supply networks may matter more than sales to Chinese customers because it can help them compete in other markets, Eskelund said. He described Chinese competitors as present across nearly every industrial sector, making it difficult for European producers to keep pace.
Eskelund warned that, if current trends continue, some European manufacturers could give up trying to compete directly with Chinese producers by 2030. He said a decline in European manufacturing could mean broad job losses, less public revenue and higher welfare costs, with unemployment lasting across generations. He also warned that dependence on Chinese suppliers could constrain Europe’s future choices.
The Guardian’s report said China’s focus on reducing reliance on imports has featured in its five-year plans since 2015. The account also described the domestic market’s saturation as a reason some companies are exploring exports.
The Guardian reported that Eskelund called on EU leaders to discuss with Beijing how both sides could create value. It separately said he was in Brussels for meetings with European Commission officials.
