Europe could soon be drowned in the flood of Chinese imports. “What we are seeing right now is a train wreck unfolding in slow motion.”, said Jens Eskelund, the president of the European Union Chamber of Commerce in China, during the publication of an alarming report. According to the latter, most European industrial sectors face increased competition from their Asian competitors. This is reflected in increasing imports while Europe's trade deficit with the Middle Kingdom has already tripled in ten years.
To understand, we must look at the delicate situation in which China finds itself internally. After decades of spectacular development, its economy is seriously slowing down. Last year, the country experienced one of the lowest growth rates (5.2%) in its recent history. This turbulence has significant consequences for the population. By the summer of 2023, youth unemployment had reached a very high level (more than 21%).
At the same time, real estate, a very important economic sector in China, entered into crisis after the bursting of a bubble. The number of transactions fell and the price of apartments fell significantly. This has created a serious problem since real estate represents between 60 and 80% of Chinese household savings, as recalled by New York Times. In addition, the country's growth seems to be lastingly penalized by weak household consumption while wages remain generally low.
