EU faces 300,000 factory job cuts as China colonises supply chains, industry warns

Eurometal, a leading industry trade body, has warned that job losses in EU manufacturing will rapidly increase unless Brussels stops the Colonisation of industry by Chinese component manufacturers.

Eurometal predicts 300,000 job losses in manufacturing in the rest of 2026 because of expanding competition from China, which is now enjoying a record 1 billion-a-day trade surplus with the bloc. On Monday, Eurometal will bring its concerns to decision-makers in Brussels, staging a protest using 10 symbolic coffins in a procession around the European Commission headquarters.

The coffins will be marked with phrases such as EU competitiveness, industrial jobs and European factories.

European manufacturers fear that the Commission is not fully aware of the Cannibalisation of their industries as China becomes embedded in supply chains through the sale of components.

The EU has already taken action on electric vehicles by imposing tariffs on Chinese imports in 2024, and in June introduced higher tariffs on imports of foreign steel.

The bloc's Trade Commissioner, Maroš Šefčovič, has also said the EU's 360Bn annual Import/Export imbalance with China is not sustainable, with both sides agreeing to hold three months of talks, ending in October, to try to avert a trade war.

Reference Sources

1. theguardian - EU faces 300,000 factory job cuts as China colonises supply chains, industry warn

China's Finance Ministry To Inject Capital Into Major Insurers

China's Finance Ministry is set to inject $54Bn into state-owned insurers and banks in a coordinated effort to shore up capital across its financial system.

China Life Insurance, the country's largest life insurer, will receive CNY 35Bn ($5.2Bn), while China Taiping Insurance Group will receive CNY 7Bn.

Separately, the People's Insurance Company of China (PICC) plans to raise to CNY15 billion through a private placement of A-Shares to the Ministry of Finance, with the proceeds to be used to replenish its capital.

The stimulus is designed to help China bolster the ability of its financial sector to invest in the stock market and lend to businesses amid signs that the world's second-largest economy is struggling to escape weak growth. Agricultural Bank of China Ltd. plans to raise up to CNY160 billion, while Industrial & Commercial Bank of China Ltd. is targeting CNY 100 billion in a separate private placement.

Both banks say they will use all the funds to replenish their core Tier-1 capital.

Reference Sources

1. nikkei - China to pump $54bn into state banks, insurers in capital-boosting push
2. bernama - China's Finance Ministry To Inject Capital Into Major Insurers
3. theguardian - China prepares 40bn stimulus for financial sector amid fears over sluggish growth
4. bloomberg - AgBank, ICBC Plan Private Placements of Up to $38.7 Billion
5. aawsat - China to Pump $47 Bln Into State Banks, Insurers in Capital-boosting Push

German startup sends first commercial rocket into space from Europe

German rocket startup ISAR Aerospace has launched the first commercial rocket to reach orbit from Continental Europe.

The 28-metre-long Spectrum rocket blasted off into space at 10:12 pm (20:12 GMT) on Saturday from the Andøya Spaceport in Arctic Norway.

The uncrewed rocket carried five satellites that were deployed while in orbit, and “spacecraft separation was completed successfully” after satellite deployment.

The Spectrum rocket reached an altitude of 100Km (62 miles) above Earth’s surface in less than four minutes.

The successful flight could strengthen Europe’s efforts to develop Homegrown launch capacity as governments spend more on satellites, Defence, and space infrastructure.

Isar says it has secured funds to develop new rockets and expand its testing and launch infrastructure and is developing a second launch site in Canada. Launch capability is right now the biggest bottleneck in the entire industry, ISAR's co-founder and CEO, Daniel Metzler, told reporters.

Friedrich Merz, the German Chancellor, hailed Saturday’s launch in a statement, calling it the beginning of a new era.

Reference Sources

1. aljazeera - German company launches rocket as Europe enters satellite race
2. theguardian - German startup sends first commercial rocket into space from Europe
3. dwen - German company successfully launches rocket to space
4. markets - Isar Aerospace Reaches Orbit, Advancing Europe’s Challenge to SpaceX
5. abcnetau - Germany's Isar rocket launches from Norway, as Europe seeks to boost space industry

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

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