European Central Bank warns jobs in Eurozone are at risk if China redirects trade to Europe from U.S. over Trump tariffs
European Central Bank warns jobs in Eurozone are at risk if China redirects trade to Europe from U.S. over Trump tariffs
What does increasing competition from China mean for euro area employment?
cross-posted from: https://lemmy.sdf.org/post/39930917
Economists at the European Central Bank (ECB) said that between 2015 and 2022, 240,000 jobs in the Eurozone had either "ceased to exist" or been shifted to less-exposed sectors as a result of competition from Chinese manufacturers.
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The ECB highlights the automobile and chemical industries as among those most exposed to increased competition from Chinese rivals. In the former, it said published job vacancies had fallen by 55% between 2019 and 2024, while in the latter the decline was 95%. In sectors unaffected by Chinese competition, published vacancies had been "relatively stable."
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The current US trade policy and the imposition of tariffs are likely to increase Chinese competition. Following the Trump Administration’s announcements of higher US tariffs on Chinese goods, Chinese exporters may expand or seek new markets elsewhere and increasingly redirect trade towards Europe. This trade diversion may amplify the penetration of imports from China into euro area markets, challenging producers [...] While euro area firms may gain some competitive advantage in US markets relative to China because US tariffs on China are comparatively higher, this is unlikely to offset losses in the domestic market.
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