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Italian machine tool sector wants tougher EU trade rules on China - Finance news and analysis from Global Banking & Finance Review
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Italian machine tool sector wants tougher EU trade rules on China

Published by Global Banking & Finance Review

Posted on July 27, 2026

3 min read

· Last updated: July 27, 2026

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Italian machine tool sector wants tougher EU trade rules on China

Italian Industry Calls for Stronger EU Trade Defenses Against China

(Corrects first name to Stefania in paragraph 3)

By Giselda Vagnoni

EU Response to Chinese Competition

ROME, July 27 (Reuters) - The European Union must bolster trade defence measures against aggressive competition from Chinese machine tool manufacturers or risk a further erosion of Europe's position in the strategic sector, an Italian industry association said on Monday. 

Brussels has been examining ways to shield European industry from what many manufacturers say is the negative fallout from China's industrial overcapacity and subsidised exports.

UCIMU's Position and Recommendations

Stefania Pigozzi, head of economic studies at Italian machine tool industry association UCIMU, said Chinese manufacturers had largely satisfied domestic demand and are now rapidly expanding overseas.

UCIMU said it wants imported machinery to be subject to the same technical and safety standards required of European manufacturers in order to level the playing field.

"Europe needs common rules that apply to everyone," Pigozzi told Reuters. "Machinery safety standards, for example, have a direct impact on production costs and ultimately on the final price of a product."

For most Italian companies, meanwhile, moving production to China to compete against Chinese manufacturers on equal terms is not an option, she added.

UCIMU represents about 250 producers of machine tools, robots, automation systems and components with combined revenue of roughly €8 billion ($9.1 billion) and employing some 30,000 workers.

China's Growing Export Share and Impact on Italy

Market Shifts in Global Machine Tool Exports

China Surpasses Germany as Top Exporter

CHINA GROWING SHARE OF GLOBAL EXPORTS, ITALY LOSING GROUND

Used to manufacture components for sectors ranging from automotive and aerospace to energy and defence, machine tools are widely seen as a bellwether of industrial competitiveness.

"The alarm bell rang last year when China became the world's largest exporter of metalworking machine tools, overtaking Germany," Pigozzi said.

Statistical Trends and Italian Export Decline

According to data compiled by UCIMU from national industry associations and Italy's trade agency ICE, China's share of global metalworking machine tool exports rose to 23% in 2025 from 8% in 2016, while Europe's fell to 46% from 52% during the same period.

Italy, the world's fourth-largest machine tool exporter, also lost ground over the period. Its share of global exports slipped to 7.8% in 2025 from 8.4% in 2016, while Italian exports to China plunged to €110 million from €316 million.

Broader EU Debate and Policy Response

The concerns of Italian manufacturers echo a broader debate within the EU over how to respond to China's growing industrial strength. 

Earlier this year Italy joined France, Spain and two other countries in calling on Brussels to strengthen trade defence tools to protect European industry from unfair competition.

($1 = 0.8788 euros)

(Reporting by Giselda Vagnoni; Editing by Joe Bavier)

Key Takeaways

  • UCIMU warns China’s share of global machine‑tool exports surged to 23% in 2025, while Europe’s declined to 46%, with Italy slipping too.
  • Italian association wants imported tools held to same safety and technical standards as EU‑made machinery to level the playing field.
  • This demand aligns with broader EU efforts to bolster trade‑defence tools, including anti‑dumping duties, safeguards, and proposals like Made in Europe and the Industrial Accelerator Act.

Frequently Asked Questions

Why does Italy want tougher EU trade rules on Chinese machine tools?
Italian manufacturers argue that Chinese imports, supported by subsidies and lower safety standards, create unfair competition and erode Europe’s market share.
What specific measures does UCIMU propose for EU trade policy?
UCIMU wants imported machinery to meet the same technical and safety standards required of European manufacturers, aiming for a level playing field.
How has China's share of global machine tool exports changed?
China's share of global metalworking machine tool exports rose from 8% in 2016 to 23% in 2025, overtaking Germany as the largest exporter.
How has Italy’s machine tool export performance been affected?
Italy's share of global exports fell from 8.4% in 2016 to 7.8% in 2025, and exports to China dropped from €316 million to €110 million.
What broader debate does this issue reflect within the EU?
The concerns mirror a broader EU debate on how to protect European industries from unfair competition amid China's growing industrial strength.

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