“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
I’m not sure whether I got that right. China has been opening up factories in Europe, so far I agree, but that has little impact on the job market in Europe as the Chinese companies bring their own workers. We see this, for example, in Spain (CATL), Hungary (BYD), in the Balkans (Norinco, a Chinese state-owned military supplier that built solar projects there, among others) as well as in other parts of the globe. There are only of few local workers at Chinese foreign subsidiaries, while the most come from China. Also, illegal workers and forced labour is widespread in this setting (recent examples are Italy’s fashion industry or Chinese carmaker BYD’s closure of its Brazilian plant amid accusations of ‘slave-like’ labour conditions).
And these are only a few examples.
Some talk of chinese companies setting foot in my country has been heard (Portugal) and one of the demands was to have local employement created, not have foreign labour be brought in. Besides, we may be a mess of a country but labour law is quiet harsh here and enforced. I’m not saying shenanigans don’t happen and won’t be made but things get spotted here. And if the whole idea of China is to bring hands from the mainland, that can’t be allowed.