The German economy is faced with a potential shift in its policy toward China. According to Friedolin Strack, Co-Head of International Affairs at the Federation of German Industries (BDI), intensive discussions are currently underway within the industry associations regarding a tougher trade stance against China. Speaking to “Welt am Sonntag”, Strack noted that they are examining various approaches to further developing the EU’s existing trade protective instruments.
The focus of these discussions includes issues such as the requirements for evidence in anti-dumping and anti-subsidy proceedings, as well as their proper implementation and speed. Furthermore, the industry leaders are debating how current tools can be used most effectively given recent challenges. Strack stressed that the EU cannot spend years developing a “super instrument” only to shelve it later; instead, they should utilize numerous smaller measures, noting that China employs a similar strategy.
These calls for a policy review come as major German manufacturers are reassessing their China engagement. Recently, the German Automotive Industry Association (VDA), one of the BDI’s most vital members, confirmed that it is rethinking its China policy. Prior to this, the Mechanical Engineering Industry Association (VDMA), another heavily involved player with substantial business in China, had already altered its position several months ago.
Oliver Richtberg, VDMA’s Head of Foreign Trade, commented in “Welt am Sonntag” that companies are currently being deindustrialized by unfair measures-a reality most businesses refuse to accept. He warned that if action is not taken now, future critical dependencies on Chinese machinery will grow, subjecting European manufacturers to increased pressure.
Richtberg urged swift action, cautioning against fear of Chinese retaliation. He argued that waiting years because of dependence on rare earths would create a destructive cycle. He dismissed mere appeals and dialogues as ineffective, asserting that China will not move politically. Since exports are the engine sustaining the country’s economy, China will maximize these holdings, necessitating proactive measures from within the EU.
