Latest Market Alert | 2 July 2026
Executive Summary
Goldman Sachs has warned that Europe’s growth is being hit more by competition from Chinese exports in third markets than by the direct EU-China trade deficit. Chinese manufacturers are increasing pressure in sectors including machinery, transport equipment and industrial goods.
Why it matters
European firms are facing tougher pricing pressure in global markets where China is competing aggressively.
UK impact
UK manufacturers, exporters and supply-chain businesses may face margin pressure, especially where they compete in capital goods, machinery, transport and industrial components.
Global impact
The risk is a broader “China shock” across export markets, with targeted trade measures more likely than blanket tariffs.
Our View
Companies should review pricing power, customer concentration, supply-chain dependency and exposure to Chinese competition in third-country markets.
Risk Indicator: MEDIUM/HIGH
Disclaimer
This market alert is provided for general information purposes only and does not constitute financial, legal, insurance or investment advice. Readers should obtain independent professional advice before making any commercial or investment decisions.