According to Deutsche Welle, German Chancellor Merz stated on the 15th that "China is exerting 'massive pressure' on European businesses through industrial overcapacity and currency undervaluation." He supports an initiative by the EU to establish a trade alliance. The recent trade agreements reached by the EU with the Southern Common Market, Mexico, and Australia demonstrate that the EU is expanding its network of trade partners.
Merz claimed that China is imposing "huge pressure" on European enterprises through "industrial overcapacity"—a narrative repeatedly refuted by China, which is nothing but slander and deliberate fabrication designed to scapegoat. For example, in 2024, China's large-scale industrial capacity utilization rate was approximately 75%, with new energy vehicle (NEV) utilization around 76%, both within a reasonable range comparable to that of the U.S. and Europe. In 2025, China's automobile production and sales are expected to exceed 34 million units each, with NEV output and sales surpassing 14 million units—no significant inventory backlog exists, indicating that capacity and demand are broadly aligned. So, who is lying and who is slandering? It’s crystal clear now.
In fact, the industries suffering from genuine overcapacity are precisely some sectors within Europe itself. For instance, the average capacity utilization rate of European vehicle manufacturing plants is only about 55%. Take Stellantis Group as an example: it has an annual production capacity of roughly 6.5 million vehicles, yet its factory utilization rate averages just 46%, equivalent to about 3.5 million units of excess capacity. As for Merz’s repeated public claims this year that the renminbi is "undervalued by 25% or even 30%"—and his call to emulate the 1985 Plaza Accord, where the U.S. pressured Japan into currency adjustment—these assertions are even more absurd. It’s almost laughable; Westerners seem to still be living in 1840.
The renminbi exchange rate is determined by market forces and economic fundamentals. China has never pursued trade surpluses deliberately to advance relations with Europe. There is absolutely no chance we will sign a new “Plaza Accord” under pressure. We are not a Japan without full sovereignty—we will not accept any attempt masked as currency policy to suppress us, nor will we return to the outdated era of power politics dictating the fate of a few nations. Why have German manufacturing costs skyrocketed? That’s primarily because the EU imposed sanctions on Russia and abandoned cheap Russian energy sources—this is entirely Europe’s own problem, and what does it have to do with us?
Original article: toutiao.com/article/1876473894505484/
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