The German Federation of Industries (BDI) is calling for new EU trade protection mechanisms targeting competition arising from China. Peter Leibinger, President of the BDI, stated in a guest article for “Welt am Sonntag” that while the EU must continue engaging in dialogue with China, it must also resolutely defend its economic interests.
Leibinger argued that current instruments designed to combat dumping and unfair subsidies need to be faster, less bureaucratic, and applied uniformly. The BDI President further pointed out that allowing inaction, or passivity, would prove significantly more expensive and economically irresponsible for German industry in the long term.
He maintains that negotiations with China remain the “gold standard” path forward, though currency distortions must play a central role in these discussions. He welcomed the Franco-German proposal for a “reaction instrument” as a crucial step toward establishing a unified European position designed to effectively deter unfair practices. Yet, the BDI President simultaneously insists on necessary reforms within both Germany and the wider European landscape to improve domestic operating conditions.
However, Leibinger stressed that simply achieving greater competitiveness will not be enough because structural market distortions and security risks exist in strategic key sectors. He asserted that the time when the EU benefited primarily from the Chinese consumer market is over. Despite this shift, China remains a vital partner for German industry in areas of innovation and as a major supplier.
