Concerns are growing within German politics regarding increasing competitive pressure emanating from China. CDU politician Norbert Röttgen warned that Beijing’s aggressive economic expansion threatens Europe. He told the “Handelsblatt” that China deliberately creates unequal competitive conditions through opaque subsidy practices and the systematic undervaluation of its currency, thereby sidestepping international trade law. Röttgen stressed that a definitive response is necessary to counter this state-directed displacement by Chinese businesses and to protect the European market.
The debate intensified following a stark warning from the think tank Center for European Reform, which suggests that Germany is currently at the epicenter of a new “China shock”. According to the think tank, China’s ascent as an industrial exporting powerhouse has already cost Germany an estimated 400,000 jobs.
In response, Green Party leader Franziska Brantner called for a significant policy shift. She demanded a clear trade policy aimed at addressing unfair competition practices. According to Brantner, this requires consistent market supervision, effective customs controls, and the strict enforcement of European platform rules against major providers like Temu and Shein. She emphasized that any entity that systematically violates European standards or gains an advantage through dumping or regulatory circumvention should be denied free access to the European market.
Meanwhile, the European Union is scheduled to discuss tougher measures against China’s export surge in the coming weeks. Ursula von der Leyen, the European Commission President, announced that she will meet with her commissioners on May 29th to determine the next steps. Furthermore, the Commission is reportedly considering developing a new trade instrument that would allow the imposition of tariffs against entire industrial sectors in China, rather than limiting actions only to single products.
