US-China trade war poses threat to potentially eliminating thousands of European jobs, as per the European Central Bank's warning
In a surprising turn of events, Chinese commerce is expanding its reach beyond the low-cost products commonly associated with platforms like Aliexpress and Temu. The export of higher-value and industrial goods, such as integrated circuits, automobiles, ships, rare earth elements, steel, and other industrial products, is on the rise.
According to recent reports, the export of integrated circuits, automobiles, and ships saw significant growth of 25.5%, 27.4%, and 11.9% respectively as of mid-2025. Rare earth elements, essential for various high-tech and clean energy applications, witnessed a surge of over 60% year-on-year exports to Europe, reflecting stockpiling ahead of tariffs and their strategic importance. Even steel exports, despite protectionist trade measures from the EU and other regions, grew over 10%.
Chinese foreign direct investment (FDI) into Europe is also increasing, particularly in sectors like automotive, consumer products, media, entertainment, and education. This trend suggests a deeper industrial and service integration beyond just goods.
European companies in machinery and semiconductor industries are now deeply embedded in Chinese supply chains, indicating that industrial components and advanced machinery are key export areas interacting with Europe’s economy.
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This news serves as a reminder that the penetration of Chinese exports in Europe is already significant and that the popular belief that Chinese commerce is limited to certain sites is contrary to the current trends. It's an exciting time as we witness the evolving relationship between China and Europe in the realm of trade and investment.
People are increasingly investing in the automotive, consumer products, media, entertainment, and education sectors in Europe, signifying a deeper service integration between the two regions. Finance from China is also flowing into these industries, reflecting a burgeoning financial relationship within the industry.
