Speaking on behalf of industriAll Europe and the continent’s industrial workforce, at the International Trade Committee of the European Parliament’s Public Hearing on Trade and Investment relations with China Judith Kirton-Darling, industriAll Europe's general secretary delivered a clear message: the debate on global trade is no longer abstract. It is about the future of European industry, the preservation of quality jobs, and the resilience of economies and societies across the continent.

International trade remains essential. Cooperation, not isolationism or trade conflict, has long underpinned prosperity. Yet the nature of globalisation has changed profoundly over the past decade, requiring a reassessment of how it is governed.

What was once characterised by relatively open markets and mutual interdependence has evolved into a system where supply chains themselves are tools of geopolitical influence. Strategic dependencies at key points in value chains are increasingly being used as leverage, exposing Europe to new vulnerabilities.

At the centre of this shift lies the rise of China as a dominant industrial and trading power. Europe’s relationship with China has entered a more complex phase, marked not by balanced interdependence but by structural asymmetries. These imbalances have translated into strategic risks for European industry.

Recent crises have underscored these realities. During the COVID-19 pandemic, disruptions in global supply chains forced factories across Europe to halt production due to shortages of essential inputs. More recently, export restrictions on critical raw materials such as gallium, germanium, and rare earth elements have reinforced concerns over the weaponisation of supply chains.

Such developments highlight a broader geopolitical truth: control over key resources increasingly determines economic power. Where previous eras focused on energy or agricultural supply, today’s strategic competition centres on critical materials and advanced industrial capabilities.

The roots of Europe’s exposure lie partly in decades of policy and corporate decisions prioritising cost efficiency and market access. Offshoring of production, research, and engineering has created long-term dependencies. At the same time, access to foreign markets often came with conditions, including technology transfers and joint ventures, the consequences of which are now becoming apparent.

Meanwhile, China has pursued a coordinated industrial strategy supported by state intervention, subsidised energy, and preferential financing. The result is a highly competitive, export-driven model with significant global reach. China now accounts for roughly 30% of global manufacturing output, far exceeding the shares of the European Union and the United States.

This dominance extends across critical sectors, including rare earth processing, battery production, solar manufacturing, and steel. Such concentration represents not merely competition, but the ability to shape markets and influence global supply conditions.

For Europe, the implications are systemic. A significant share of imports falls into categories where dependency is high and diversification remains limited. These structural imbalances are compounded by persistent overcapacity in key industries, which, when exported, places downward pressure on prices, wages, and working conditions worldwide.

The social consequences are already visible. Europe’s industrial sector supports around 30 million jobs, many in regions heavily reliant on manufacturing. Disruptions to supply chains or unfair competitive pressures can lead to plant closures, job losses, and widening regional inequalities. The decline of Europe’s solar manufacturing industry serves as a warning of what could happen in emerging sectors such as batteries, hydrogen, and electric mobility.

In response, industriAll Europe is calling for a stronger and more strategic policy framework. This includes reinforcing trade defence instruments, which are currently seen as too slow to address the scale of today’s challenges. New sector-specific safeguards may also be required to address structural overcapacity.

At the same time, greater coordination at international level is needed to tackle global imbalances. Recent initiatives to address industrial overcapacity represent a step forward but must evolve into sustained and effective cooperation.

Crucially, Europe must also make better use of its internal market. A more assertive industrial strategy—anchored in the concept of “Made in Europe”—should combine economic resilience with strong social standards. Investment, including from foreign companies, should contribute to strengthening Europe’s industrial base and ensuring fair competition.

Ultimately, the message is clear: Europe must move from a reactive to a proactive industrial policy. Safeguarding high-quality jobs, ensuring a just green transition, and building resilient supply chains will require coordinated action—placing the interests of workers and communities at the heart of Europe’s economic future.