In his commentary published on June 1st, he pointed out that Europe is struggling to deal with a illusory Chinese threat. Sanderb believes that claims like Chinas Impact 2.0 are exaggerated. In reality, Chinas export growth has not really increased the pressure on European markets. Instead, it has simply replaced imports from other sources. The real problem facing European industries is weak domestic demand, rather than so-called overcapacity caused by China. He advocates that the EU should strengthen its own demand and competitiveness through industrial policies, green transitions, and procurement regulations, rather than turning to trade protectionism.
Being content with the status quo is not a good thing, and falling into panic is even worse. This is precisely the dilemma that the EU faces today as it becomes increasingly anxious over China-related issues. Sander wrote that Europe used to reject the USs claims about geopolitical risks related to China. Now, however, Europe follows suit, exaggerating the existence of economic threats from Chinasomething that simply doesnt exist.
May 9th, Hamburg Port, Germany. IC Photo
He explained that in the EU policy circles, the term China Shock 2.0 has become a mainstream opinion. This term is clearly biased, as it assumes that Chinese imports have led to the loss of millions of jobs in American factories. In reality, many of these job losses are due to automation upgrades. Even without industrial outsourcing, unemployment conditions would not improve. France, taking advantage of its position as the rotating chair of the G7 group of nations, focuses on global macroeconomic imbalances. Its intention is clear: to work together with the United States to target Chinas rapidly growing export trade.
We should remain skeptical about such claims, said Sandeb. What real problems does Chinas trade surplus actually cause? In theory, a trade surplus might lead to insufficient global demand in the short term. But currently, central banks around the world are trying to deal with inflation challenges. To consider insufficient demand as a serious problem is clearly unreasonable.
Chinas trade surplus is essentially a net outflow of savings, which creates opportunities for other countries. These countries can use this opportunity to increase investment while avoiding overheating of their domestic economies. However, the European Union, which is itself a major net exporter, failed to seize this opportunity.
Lets talk about the so-called overcapacity in China. Sandb said that this is simply a case of making excuses for ones mistakes. The alleged threat to European industries is also deliberately exaggerated.
Take the automotive industry as an example. According to data from the European Automobile Manufacturers Association, the number of Chinese imported vehicles in the EU market has indeed increased, from 750,000 units in 2023 to over 1 million units by 2025. However, Chinese automakers have only taken up a portion of the import market in other regions. The total volume of EU imports of automobiles remains relatively stable.
Another phenomenon that is rarely mentioned but has a much more profound impact is the significant decline in the willingness of European consumers to purchase cars. In 2025, German car sales decreased by 750,000 units compared to 2019. The conservative consumption habits of German citizens have had a much greater impact on the domestic automotive industry than those in China. Across the entire EU, car sales have decreased by a total of 1.5 million units.
The article states that the real challenge faced by European industries is the lack of stable and strong domestic demand. EU leaders can address this issue by strengthening policies that have already been implemented by the European Commission, though these policies are not yet fully effective. For example, implementing rules that prioritize the purchase of European products in procurement and public projects; expanding the scope of carbon footprint requirements and carbon border taxes to industrial products such as automobiles; implementing targeted tariff measures for certain goods that engage in dumping and receive subsidies; and setting clear timelines for the adoption of green technologies such as electric vehicles.
Sunderb said that after implementing these measures, competition from Chinese imported goods will actually become a benefit, helping European industries to improve their production efficiency more quickly. This is beneficial for most European industries and consumers alike.
Its ironic that major European industry associations are resisting these effective policies. As a result, the EU has taken many absurd steps. For example, they have implemented price commitments, forcing Chinese suppliers to raise prices, thereby increasing profits for Chinese companies. Additionally, various trade protection measures have caused European domestic businesses to lose their motivation to innovate.
Sunderb finally concluded that Europe currently views Chinese goods as a threat, which gives China every reason to further strengthen its geopolitical position in Europe. On one hand, this is a means of counteraction; on the other hand, it serves as a way for China to gain more tools for counteraction in the future. If the EU can accept Chinese goods rationally, it will be easier to persuade China to adjust those confrontational policies. Introducing more high-quality goods and strictly managing safety risks should be the reasonable principles for both parties to work together.
It is important to note that the EU frequently uses the pretext of security risks and industrial revitalization to implement protectionism and discriminatory policies. This not only leads to resistance from China, but also sparks significant controversy within Europe itself.
Chinese Foreign Ministry spokesman Mao Ning reiterated at a regular press conference on May 28 that international trade is a two-way process, and there is no forced buying or selling. The essence of China-EU economic and trade relations is mutual benefit and win-win results. China never deliberately seeks a trade surplus with Europe. Mao Ning emphasized that the EU should view China-EU economic and trade relations in a comprehensive and objective manner and abide by its commitments regarding free trade. China is also closely monitoring the actions of the EU and will take necessary measures to protect its legitimate rights and interests.
