Germany Calls for Annual Geo-Economy Stress Tests and Taiwan Crisis Plans for Businesses
Politics

Germany Calls for Annual Geo-Economy Stress Tests and Taiwan Crisis Plans for Businesses

A commission from the German Bundestag has proposed that the federal government should conduct annual “geo-economic stress tests” in collaboration with industry associations and systemically important companies. These tests should specifically include the creation of crisis plans for a “Taiwan blockade,” covering the scenario of a Chinese attack on Taiwan. These proposals originate from a report by the commission, which was reported on by the newspaper Handelsblatt.

The commission was established by the Bundestag six months ago and consists of 13 experts drawn from industry associations, research institutions, and trade unions. Beyond the stress tests, the experts suggest that components in critical sectors should exclusively be sourced from “trusted manufacturers.” This is particularly important for the upcoming 6G mobile standard; this mirrors earlier debates around the use of components made by the Chinese manufacturer Huawei in 5G infrastructure.

The commission’s report stipulates that no critical components should be procured from countries deemed untrustworthy. Furthermore, companies must be analyzed to determine if they are unduly influenced by investments or holdings originating from these non-trusted nations.