What does increasing competition from China mean for euro area employment?

Clémence Berson, Claudia Foroni, Vanessa Gunnella and Laura Lebastard

Economic Bulletin Boxes, 2025, vol. 5

Abstract: This box explores the implications of rising import penetration of Chinese products for the euro area labour market. As China advances into high value-added sectors, such as vehicles and specialised machinery, its exports increasingly challenge euro area firms across domestic and third-country markets. Panel regressions, following Autor et al. (2013), show that greater exposure per worker to imports from China is associated with a negative impact on the employment rate. Trade diversion effects arising from elevated US tariffs on Chinese goods are likely to intensify these trends, increasing China’s impact on euro area employment. JEL Classification: E24, F14, F16, J23

Keywords: China shock; competition; employment (search for similar items in EconPapers)
Date: 2025-08
Note: 3243564
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ecb.europa.eu//press/economic-bulletin ... 2~6755747435.en.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbbox:2025:0005:2

Access Statistics for this article

More articles in Economic Bulletin Boxes from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().