“We’re talking about losing significant parts of the automotive sector and its supply chains, pressure on machine tools, chemicals, the wind industry in Europe that could be wiped out in the next couple of years. I think there’s just more and more concern about the fact that in all of these sectors, China is moving into a dominant or even monopolistic position,” says Andrew Small, director of the Asia programme at the European Council of Foreign Relations (ECFR) in Berlin.
Some in Brussels thought Trump’s return to the White House could help to facilitate a reset in the EU-China relationship. But while Europe’s reliance on the US for security meant that the EU had to roll over when Trump threatened tariffs, China refused to bend, and its tough strategy has so far been successful.
“I think what became clear from the Chinese end was that the view would rather be that Europe is in a weaker position as a result of the situation in the transatlantic ties, and Europe needs to be the one to give things up. That’s what we’ve seen pretty much since then,” says Small.
China’s dominant position in some manufacturing sectors offers leverage of its own, as the Dutch government discovered last September when it seized control of Nexperia, a Chinese-owned chip manufacturer. Beijing retaliated by blocking exports of Nexperia chips
China’s Economy is Expected to Grow 4.8% in 2026 Amid Surging Exports
This is based on official numbers. According to these, the Chinese economy is always doing great. There was never a downturn, it’s always growing, and always by around 5%. Because this annual rate is needed to achieve Xi Jinping’s long-term growth target.
Don’t say something else if and when you are in China, though, or if you would like to do business in China, and Goldman Sachs has a strong presence there, it’s one of the few Western banks with a license for fund sales in China, for example.
In 2024, Zhu Hengpeng, a renowned Chinese economist at the Chinese Academy of Social Sciences, expressed doubt of China’s 5% annual growth, claiming the growth to be much lower. He disappeared then for some months. (In the meantime he is back again working for the academy, but he is now convinced that the 5% is the number to be announced, at least that’s what he is doing).
I could tell you a lot more, but I know I can save my breath. You wouldn’t believe anyway. Your post history’s spin tells clearly that you are not interested in independent information.