Crisis Alert! China's Component 'Virus' is Consuming European Manufacturing

Illustration: Chinese-made electric vehicles flooding the European market.(video screenshot)

[People News] Recently, a leading European industry association issued a stark warning: unless the Brussels authorities intervene to halt the 'colonization' of European industry by Chinese component manufacturers, unemployment in the EU manufacturing sector is set to soar.

On the 7th, the European Metal Association organized a protest march outside the European Commission headquarters. Demonstrators carried 10 symbolic coffins emblazoned with phrases like 'EU Competitiveness', 'Industrial Job Opportunities', and 'European Factories'. They urged the European Commission to acknowledge the severe erosion of local European industry caused by components from China.

The Chinese Component 'Virus' is Undermining the European Value Chain

The British newspaper The Guardian reported on the 6th that the European Metal Association (Eurometal) has warned that due to the intensifying competition from China, the EU manufacturing sector could lose as many as 300,000 jobs by the end of 2026. China's trade surplus with the EU is raking in an astonishing 1 billion euros every day.

Julius pointed out that China has long incorporated the control of global supply chains into its 'Five-Year Plan'. No longer content with being just a supplier of raw materials, China is now striving to dominate key components such as metals and chemicals, which account for up to 90% of total manufacturing consumption.

Chinese components, benefiting from hidden subsidies and undervalued exchange rates, have managed to bypass EU tariffs and carbon taxes, effectively consuming the mid-tier manufacturing sector in Europe like a virus.

At the same time, European politicians blame the closures of companies in Germany and elsewhere, as well as rising unemployment, on market competition, failing to address the underlying issues of trade defense gaps and expensive energy policies.

EU Policies Force Local Companies to 'Weave Their Own Cocoons'

A comprehensive analysis by industry experts reveals that the EU is not proactively opening its market to China; instead, it has found itself in a policy deadlock characterized by the need for both green transformation and low inflation. The EU imposes high tariffs on China's 'crude steel' while allowing 'intermediate processing components' (such as screws and gears) to enter without tariffs. As a result, European component manufacturers are compelled to purchase expensive domestic steel, while Chinese manufacturers can utilize inexpensive domestic steel to produce parts and then sell them to Europe at low tariffs or even tax-free.

This situation creates an unfair competitive landscape where European companies face high carbon taxes, while Chinese products can enter with 'zero carbon tax'. It is clear that the EU's unequal policies have led local companies to 'weave their own cocoons'.

To maintain profits, large European automotive and machinery groups heavily depend on cheap Chinese components and lobby the government against imposing tariffs, which has resulted in a cautious approach from the EU Commission.

China employs state capitalism to provide targeted subsidies, while the 27 EU member states engage in protracted negotiations. By the time any legislation is finalized, the local supply chain has already collapsed.

The Strategic Trap of Infiltration and the 'Climate Noose'

This industrial crisis further underscores the CCP's strategic infiltration into Western elites and policy systems.

Many former prime ministers, ministers, or senior legislators from various EU countries quickly join consulting firms, foundations, or boards associated with CCP state-owned enterprises, Huawei, or Chinese financial institutions after leaving office, receiving substantial salaries. This practice of 'leaving a backdoor while in office and taking high pay after leaving' represents an implicit transfer of benefits that significantly influences politicians' decision-making while they are in office.

In the book "The Devil is Ruling Our World," published by the editorial team of "Nine Commentaries on the Communist Party," a systematic and critical argument is presented in Chapter 16, titled "Environmentalism: Behind It Is Communism." It asserts that the current movements for "green transformation," "climate justice," and radical environmentalism are fundamentally driven by communist ideology and the Chinese Communist Party (CCP), which are the main beneficiaries of these initiatives.

"Green is merely a facade, while red is the true essence."

The book explains that after the setbacks faced by traditional socialism and labor movements in the West, communist forces have redirected their efforts towards the environmental sector.

It characterizes many radical environmental organizations as "watermelons"—green on the outside (representing environmentalism) but red on the inside (symbolizing communism/extreme left).

The authors argue that the "climate crisis" has been constructed as a "global threat of destruction" that cannot be addressed through free market solutions. This narrative provides a moral justification for Western governments to increase regulation, impose high carbon taxes, and undermine the capitalist free enterprise system, effectively instituting a form of "planned economy" and expansive government control in the West.

The CCP's Double Standards and the West's Self-Imposed Shackles

The book explicitly states that global climate agreements (such as the Paris Agreement) and the climate justice movement have created an extremely unequal "double standard" in practice, driven by the CCP's strategic calculations and manipulations.

Under the pressure of "climate justice," Western environmental organizations and elites compel Western nations to close traditional energy sources, impose high taxes, and restrict domestic manufacturing development, resulting in deindustrialization in the West and soaring energy prices.

The Chinese Communist Party (CCP) leverages its status as a 'developing country' to secure exemptions and extended timelines in international climate negotiations. While the West engages in self-destructive carbon reduction efforts, the CCP is simultaneously expanding coal power on a massive scale and subsidizing domestic companies.

The book analyzes how left-wing environmental organizations in the West are highly critical and demanding regarding environmental issues in liberal Western countries. However, they often overlook the severe environmental pollution and extensive coal power construction by the CCP, even portraying the CCP as a 'global leader in green energy.'

Trusting the Communist Party and surrendering control of the economic lifeline

The book further argues that the push for a radical 'green energy transition'—which includes mandatory use of solar energy, wind energy, and electric vehicles—effectively hands over the energy and industrial lifeline of Western societies to the CCP.

Most of the key raw materials and manufacturing capabilities needed for this green transition, such as rare earths, solar panels, and lithium batteries, are predominantly controlled and monopolized by the CCP.

As the West pushes more aggressively for the 'green transition,' its dependence on the CCP's supply chain deepens, ultimately leading to a situation where the West is completely constrained by the CCP in terms of economy, energy, and even geopolitics.

This situation reflects the painful consequences of Western elites' long-standing failure to recognize the true nature of the CCP, having fallen into ideological and interest traps. The saying that circulates among the Chinese people, 'Trust the Communist Party and you will run headlong into the crematorium,' which has been a survival lesson learned through the blood and tears of countless ordinary citizens over decades, has now been validated once again in the physical industries of Europe, tens of thousands of kilometers away.

(People News first published)
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