A French government report from the High Commissioner for Strategy and Planning has issued a stark warning about China’s industrial rise, calling it a “systemic shock” to the European economy. The study reveals that Chinese manufacturers now produce goods at four times the speed and one-quarter the cost of European counterparts, while matching or exceeding quality standards.
The report indicates that nearly a quarter of European exports face intense Chinese competition, with up to 55 percent of European manufacturing output potentially threatened in the medium term if current trends continue. Germany stands on the frontlines, having already lost 240,000 industrial jobs since 2023 as Chinese competition directly impacts its core sectors including machinery, industrial equipment, and plastics. Central European countries like Slovakia, Czech Republic, and Hungary, which host German subcontractors, face significant risks as well.
France is not immune to these pressures. Beyond industries intensive in chemicals and industrial inputs such as batteries, plastics, and rubber, over 70 percent of the automotive sector’s exports are affected. Even traditionally high-value French sectors like aerospace and nuclear energy are vulnerable, with Chinese manufacturers operating at remarkable speed and efficiency.
Given the 30 percent to 40 percent cost differential with Chinese products, the report argues that existing trade protection measures are structurally insufficient. High Commissioner Clément Beaune proposes two options to rebalance power with Beijing: either impose a 30 percent tariff on all Chinese products, or depreciate the euro by 20 percent to 30 percent against the yuan, which experts believe is already undervalued by 20 percent to 25 percent.
The tariff option faces challenges, particularly convincing other European nations like Germany, which has already opposed tariffs on electric vehicles. France plans to raise the trade imbalance issue at the next G7 meeting in June at Évian-les-Bains.
Source: Radio France International, February 10, 2026
https://rfi.my/CQnw