German industry is voicing concerns over a surge in exports from China, raising questions about the long-term stability of the German and European economies. According to Wolfgang Niedermark, a member of the Executive Board of the Federation of German Industries (BDI), Chinese companies are increasingly seeking export markets due to weakening domestic demand.
The BDI representative told “Der Spiegel” that Chinese firms are employing “aggressive tactics” in their pursuit of international sales. These practices reportedly include instances of price dumping and increased violations of intellectual property rights. Niedermark explained that Chinese companies are producing volumes significantly exceeding their domestic market’s capacity, a trend increasingly prevalent across a wide range of sectors beyond traditional areas like steel, solar power and batteries. The list now encompasses wind energy, electric vehicles, mechanical engineering, chemicals and semiconductors.
The BDI highlights that these “systematically created overcapacities” distort competition and pose a risk to the stability of global markets. The situation is further complicated by ongoing efforts to restrict trade with China. The United States is actively limiting market access and emerging economies in Asia and South America are increasingly implementing protective trade measures.
This confluence of factors raises the potential for a shift in trade flows towards the European Union, a development that necessitates careful assessment and planning to mitigate potential economic repercussions.
