China's industrial transformation is pushing European companies out of global markets, the European Central Bank said on Tuesday, with German firms facing some of the largest losses in machinery and transport equipment. The EU's share of global goods exports has declined most in the sectors and destinations where China has strengthened its position.
China has expanded its global presence in recent years by shifting toward higher-value and technology-driven production, directly competing with established European exporters, the ECB stated. As a result, the EU's share in global goods exports has declined, particularly in machinery and transport equipment, the bank said in an Economic Bulletin article.
Germany has the greatest export similarity with China among the EU's largest nations, according to the paper, while Italy has the smallest. Smaller countries, including Ireland and Greece, were among the least exposed to the shift.
The ECB noted that this points to intensifying competition in sectors that have been key drivers of growth in some European economies over past decades, including automotive production and industrial machinery.
Source: Investing.com
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