Europe Faces Growing Trade Deficit with China in the Automotive Sector
Key Highlights:
- European automotive suppliers, as reported by the association CLEPA, are facing increased pressure due to rising imports from China.
- Job cuts in the industry have reached 18,900 in the first half of 2026, continuing a troubling trend for the third consecutive year.
- Chinese automotive component imports rose to €5 billion in H1 2026, a 23% increase from the previous year.
- Conversely, EU automotive exports fell significantly from €28.9 billion in H1 2024 to €24.4 billion in H1 2026, with a notable drop in exports to China from €5.4 billion to €3.2 billion.
Concerns Raised:
- The automotive trade surplus in Europe has been eroding, dropping from €14.2 billion in H2 2023 to €8.6 billion in H1 2026.
- There is an ongoing restructuring in the automotive industry, yet no substantial strategy is in place to counteract the decline in production and trade.
Quote from CLEPA Secretary General:
Benjamin Krieger emphasized the severity of the issue, stating, “Job losses are the visible symptom of a deeper problem: unfair competition.”
Overall, the landscape reflects a growing imbalance, with Europe increasingly reliant on Chinese imports while struggling to maintain its export base. This situation demands urgent strategies to bolster local manufacturing and address unfair competition.
