New World Investment Research

China’s exports are likely to continue gaining market share in Europe unless meaningful protectionist measures are introduced. This dynamic is both deflationary and contractionary for European growth. Germany, as the most industrialised and manufacturing-oriented economy in the region, is the most exposed: domestic producers face intense import competition, margin compression, and weaker output.

While European consumers benefit from lower prices and wider access to goods and services, the adjustment costs fall disproportionately on firms and labour, through reduced profitability, job pressure, and de-industrialisation risks.