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German industry presses Merz for tougher China policy
Companies say Chinese subsidies and pricing pressure are eroding German market share and want Berlin to prepare trade-defence measures.
- German industry increased pressure on Chancellor Friedrich Merz on Wednesday to adopt a tougher stance toward China, prompting the chancellor to ask his cabinet to develop proposals addressing trade imbalances between the European Union and China.
- Germany's trade deficit with its largest partner widened to €89.3 billion last year, as imports rose 8.8% while exports fell 9.7%. Automakers like Volkswagen now face intense competition from Chinese rivals such as BYD in the European market.
- An OECD report found subsidies account for nearly 60% of Chinese manufacturers' global market-share gains. Deutsche Bank analysts estimate an undervalued yuan allows Chinese firms to undercut German prices by 30% to 40%.
- Merz signaled support for Brussels to prepare trade-defense measures should October talks between the European Union and China fail. France, Italy, and Spain are among EU nations pushing the bloc to revamp its trade-defense framework.
- Matthias Bianchi of the German Association of the Mittelstand said companies fear retaliation, yet "doing nothing has also become a risk." This reflects Germany's shift from resisting trade barriers to recognizing competitive pressures.
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German industry presses Merz for tougher China policy
German industry is increasing pressure on Chancellor Friedrich Merz to take a tougher line with Beijing, with companies calling for stronger action to address what they describe as unfair competition from Chinese rivals.
·London, United Kingdom
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Total News Sources4
Leaning Left1Leaning Right0Center3Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
L 25%
C 75%
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