15/07/2026
The famous Peking Duck found itself at the centre of an international row last week, as the EU launched an anti-dumping investigation into imports of the bird from China.
The move has been seen as the latest incident in an ongoing tit-for-tat argument between the two blocs, as they begin formal trade negotiations.
One elephant in the room of any conversations between China and the EU will be automobiles. Until recently, China was a key market for German car manufacturers, shipping mainly combustion-engine cars east. However, the rise of Chinese competitors, particularly in electric vehicles (EVs), has rapidly reversed the flow. Squeezed between US tariffs and rapidly improving Chinese models, the German industry has found itself under significant pressure.
Industry giant Volkswagen’s (VW) share price has been on a downward trend since 2021. It was down over 30% year-to-date as of Friday. Profits have also been under pressure for much of this time last week, VW announced a series of drastic measures to make the business more competitive. These could include the loss of 100,000 workers and up to four plant closures in Germany. Such moves would likely have to overcome powerful labour unions, though.
Recently the German government announced a series of significant reforms, including linking pension age to average lifespan, and tighter requirements for sick leave. These were announced in the hope of making Europe’s historic manufacturing powerhouse more competitive.
Whether these interventions will be enough to improve German automobile market share within and outside of the EU is yet to be seen.
Read more: https://www.mathieson-financial-services.co.uk/article/detail/sjpp/weekwatch-13-07-2026
