Why "Made in EU" Matters

Why "Made in the EU" Matters

Italy was the first EU country I encountered in my career, back in 1986, when I worked as a production and sales assistant. At the export division, I handled angora fiber, which, alongside cashmere, was one of the most important fibers shipped to Italy—a global leader in spinning and textiles.

My first visit to Italy in 1994 brought me to Biella and Prato, where spinning mills and factories were buzzing with activity. Business was booming, just as I had imagined.

Fast forward to 2014, when I became a temporary resident in Milan. Over the course of a year, I visited factories not only involved in spinning but also in shoemaking and bag production. It was clear that the landscape had changed. The industry had shrunk significantly, with only a few factories remaining. Many people had left the sector, and some of the colleagues I had met earlier in the spinning industry were now working for Chinese spinners as managers or sales representatives.

In just 20 years, Italy had lost its crown in the spinning industry, shrinking by nearly 90%. Chinese spinners had taken over, dominating the global market for sweater yarns, with only a handful of Italian spinners left.

When factories close, people flock to the service sector, but these jobs often pay no more than minimum wage—if they are available at all. The effects on Italian families and their communities are as severe as one might expect.

Germany has been less affected by such industrial shifts, perhaps due to its unique system where workers sit on company boards, making it difficult to close factories without broad agreement. Some may see this structure as overly controlled, but it works—it prevents factory closures based on the decision of a single person. As a result, the rate of factory closures in Germany is far lower than in other Western industrialized nations. However, even German industries—especially in the automotive and chemical sectors—are starting to feel the heat from Chinese competition. After years of joint ventures and technological support, Chinese companies are now able to compete with Germany on cost, sometimes even surpassing them.

Many in Europe are still optimistic, believing that China’s massive population and market will eventually provide a return on investment, offsetting the negative consequences of losing manufacturing dominance. There’s a popular sentiment in business circles that if just 1% of Chinese consumers buy European products, they’ll become overnight billionaires—a “China dream.” I often tell them to hope for 1 PPM (one part per million) instead, as that’s a more realistic chance of success. And even when those orders do come in, Chinese companies will likely be the first to reap the benefits, especially if European companies don’t understand China’s cultural and historical complexities.

People living in free societies often dream of mutual prosperity and forget that authoritarian regimes use sweet promises to mask their true intentions. This is why Europe has often turned a blind eye to China’s unfair trade practices and human rights violations, revising its ethical boundaries time and again. The same applies to Russia. Europe dismissed the Crimean invasion as a minor issue until Russia's full-scale invasion of Ukraine served as a wake-up call.

The European Union (EU), with its 27 member countries and several candidates, represents a great unification of democratic values and economic potential. Some EU countries have a lower wage structure and a young, educated workforce, which could bring significant economic power back to the region. However, this potential can only be realized if properly executed, with policies in place to encourage both European and international brands to commit to manufacturing in the EU. These companies should aim to have at least 50% of their total purchase volume annually made within the EU over the next decade. If they fail to meet this goal, additional taxes should be applied. By another hands, by collaboration with existing industry player to seek the cost effectiveness to be made in EU, target the final price shall not exceed 30% more than Chinese imports at current , or after 60-100% duty applied , shall be much cheaper than Chinese imports after duty. It can be achieved by stable order to the new joint venture factory or new sets up automation factories, and with update innovation and automation system at production line .

The most urgent matter, however, is to impose heavy duties of 60-100% on Chinese imports across all sectors. Despite potential retaliation from China, European politicians and business leaders must face the reality that China will only buy what it absolutely must from Europe. If China can source locally, it will not buy from Europe. Europe is heading toward a breaking point, and the sooner we take action, the better. Otherwise, we risk further industry collapse and factory closures, which even major companies like Volkswagen may not be able to fend off. Heavy duties are not just a defensive measure—they are seeds for the future, encouraging the immediate return of manufacturing to Europe. Any manufacturing facility that moves back will contribute to the long-term health of Europe’s economy.

Furthermore, the duty-free status granted to products made with cheaper labor in third countries but containing Chinese-manufactured materials must end. These materials should fall under the same duty categories as finished goods, with duties of 60-100%. Only materials imported directly from China for European production should receive a discounted duty rate based on each industry’s average cost. Duties are the last tool the EU has to protect local industries before it’s too late.

On the consumer side, Europeans must use their purchasing power to support brands and companies that commit to these goals. By voting with their wallets, they can help ensure progress toward a "Made in the EU" future.

Some brands have already achieved this, with over 50% or even 100% of their products made in the EU. However, many more brands need to step up. The creation of manufacturing jobs—whether through automation, traditional artisanship, or home crafts—will provide countless opportunities for EU citizens, enriching society and making the EU more sustainable and powerful than ever.

A stronger EU, built on a foundation of local manufacturing across all member states, will not only bolster economic growth but also contribute to global peace and prosperity.

The time to act is now—shall we wait, or make the first move as quickly as possible ?