China’s industrial surge outpaces US tariffs, threatens Europe

Chinese firms have increased their share of the global market by roughly 40% across major product categories within a single year, with electric vehicles and digital technologies leading the growth. This expansion continues despite the United States imposing temporary tariffs of up to 145% on selected Chinese goods.

Companies such as Contemporary Amperex Technology Co. Limited (CATL) dominate battery production, deepening global supply‑chain reliance on Chinese technology. Chinese electric‑vehicle makers are now competing directly with European premium brands in markets like Thailand, while Chinese digital components and AI‑related hardware see strong international demand.

A joint report by the East Studies Center and the Business Union warns that the rapid industrial advance is creating a shock for European manufacturers, prompting calls for stronger EU intervention and state support to counter what is described as a potential degradation of the European industrial base.