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Germany industry association pushes for tougher China policy
The 42-page paper says de-risking must be stricter and more consistent, and it warns that retaliation from Beijing could raise costs.
The Federation of German Industries published a 42-page policy paper on September 25 urging the German government and European Union to pursue de-risking from China "far more stringently" as a multi-year guideline for about 100,000 firms.
China regained its status as Germany's largest trading partner in 2025 with total bilateral trade worth €251.8 billion, yet Germany's goods deficit widened to €89.3 billion, creating pressure for the BDI's new industrial policy response.
Manufacturers including the Mechanical Engineering Industry Association previously called for tighter trade defense, while Volkswagen Group announced 50,000 job cuts in Germany by 2030 citing dismal 2025 annual results.
Chancellor Friedrich Merz requested cabinet proposals on EU-China imbalances, with a decision on Germany's negotiating position at EU level expected in October as the BDI guidelines serve as policy reference.
The BDI warned that passivity would be "far more costly" economically and irresponsible regarding security policy, urging Berlin to prioritize competitiveness and climate protection while diversifying supply chains.
The German industrial location is under pressure: supply chains are dependent on China, US measures create uncertainty. Now the branch association BDI formulates new priorities - and criticizes previous concessions to the US government.