China’s industrial transformation is eroding European companies’ position in global markets, especially in machinery and transport equipment, the European Central Bank said in an Economic Bulletin article published on Sept. 22. The EU’s share of global goods exports is declining as Chinese companies become more competitive in high-value-added and high-tech products. Germany faces the greatest exposure among EU economies, with an export composition most similar to China’s, while Italy has the least similarity; smaller countries including Ireland and Greece are less affected. The ECB said competition is intensifying in industries that have driven European growth, including automotive production and industrial machinery. China is also importing fewer European goods as domestic production expands, with the decline most pronounced in Germany and Central European economies integrated into European manufacturing and automotive supply chains. The findings add to concerns outlined by the European Union Chamber of Commerce in China, whose President Jens Eskelund said China accounted for 40% of global container exports on a rolling-average basis over the previous three months. The chamber has called for reforms to improve European companies’ access to China, while EU policymakers debate additional tariffs amid concerns about manufacturing, employment and widening trade imbalances.