The recent figures from CLEPA, the European automotive components supplier association, reveal a growing trade imbalance between Europe and China in the automotive sector. Key points include:
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Trade Imbalance: There is an escalating disparity in trade dynamics, with China exporting more to Europe and capturing a larger share of the automotive value chain.
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Job Cuts: European automotive suppliers announced 18,900 job cuts in the first half of 2026, marking the third consecutive year of job losses. Despite a reduction in cuts compared to late 2025, the trend remains concerning.
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Import Surge: Chinese component imports reached €5 billion in the first half of 2026, a 23% increase from the previous year, while EU exports to China declined significantly.
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Deteriorating Trade Position: EU automotive exports fell from €28.9 billion to €24.4 billion over two years, with exports to traditional partners stagnating and a notable decline in trade with China.
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Erosion of Trade Surplus: The overall surplus in Europe’s automotive trade has sharply decreased, from €14.2 billion in late 2023 to €8.6 billion by mid-2026, with a deficit in trade with China emerging.
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Industry Restructuring: Europe’s automotive industry is undergoing restructuring amidst a decline in its global value chain position, leading to fewer jobs and intensified competition from China.
Benjamin Krieger, CLEPA Secretary General, emphasized that job losses reflect deep-rooted issues of unfair competition, warning of increasing dependence on Chinese manufacturing while facing barriers to exports.
For further details, the full article can be found on Just Auto.
