> You have exactly the same burden trying to sell CN-manufactured hardware in the EU.
Not if you're a Chinese OEM: you just mail it in, and thanks to the arcane operation of international postage it's cheaper to post to Germany from China than from Germany. CE is such a European type of regulation, there's almost no enforcement, while at the same time it's so vague that simply working out what directives you might need to comply with is time-consuming.
Mind you as others have pointed out, there is still EU electronics. It's just not massive production runs for consumer electronics, much more of it is for defence, aerospace, and medical. And a bit of automotive, although that is definitely going to fall to Chinese car OEMs.
Europe is starting crack down on individual CN import - for exactly this reason. But that's still not going to solve the real problems EU-based hardware companies run into.
The whole problem is that the EU electronics industy is laser-focused on those defence and aerospace runs. They expect everything to be bespoke and complicated, so their entire business model is built around it.
But the vast majority of hardware isn't that complicated. I don't want a two-month ordering process with a "call for pricing" and a €1500 "engineering fee" - I want a JLCPCB-like instant quote and click-to-order for my dime-a-dozen 4-layer 10x10cm prototype!
The fact that a handful of industy giant are still doing production in Europe while moving at a glacial pace is not that relevant when China is rapidly out-innovating the West. If it continues like this, they will eventually die too.