Politicians from the CDU, SPD, and Greens are calling for a stronger response against unfair trade practices by China. Citing potential consequences for the German economy, they are urging the European Union and the German federal government to take greater action to protect businesses.
Cem Özdemir, the Minister-President of Baden-Württemberg (Greens), told the newspaper that a consistent approach is needed against unfair competition-ranging from anti-dumping and anti-subsidy measures to effective trade policy protection tools for key sectors such as the automotive industry or mechanical engineering. Furthermore, he stressed that there needs to be a coordinated and targeted European industrial policy. Özdemir added that if public funds are used, as was the case with the electric car bonus, these should follow a “Buy European” principle to strengthen European value creation. He identified defending against unfair competition and what he termed “China Shock 2.0” as the most challenging issues his government must address.
Norbert Röttgen, a CDU foreign policy expert, also told the newspaper that the EU must finally do something about China’s deliberate and massive unfair trade practices. Siemtje Möller, an SPD Member of the Bundestag and foreign policy expert, called for a clear, aggressive plan, noting China’s global leadership ambitions. She argued that German politics remains far too lenient toward China. Möller stated that if Chinese manufacturers are offering certain industrial machinery at 50 percent lower prices than German competitors, while also providing spare parts and service, this can only be explained by illegal subsidies. She concluded that low wages and forced labor alone could not account for such low pricing.
Franziska Brantner, co-chair of the Greens, told the FAS that the federal government is doing too little to shield the economy from unfair competition from China. She put forward several demands: If China closes its markets, Europe could similarly exclude Chinese companies from public tenders and subsidies. Additionally, a “Buy European” clause could increase the market share of European electric vehicles. Brantner explained that the undervaluation of the Chinese currency, combined with overproduction in many sectors, leads to unfair pricing for Chinese goods in the European market. Simultaneously, she noted that German companies are being barred from bidding on contracts in China.
