The German Industry Association claims that the "China Shock 2.0" is severely undermining German industry! On August 3rd, according to a report by AFP, Tania Gornah, CEO of the German Industry Association, stated in an interview that "China Shock 2.0" is inflicting heavy damage on German industry. This round of shock is no longer affecting individual sectors but is exerting immense pressure on the entire industrial system—due to critical raw material supply dependence on China, the obvious undervaluation of the Renminbi (RMB), overcapacity, and increasing market barriers both domestically in China and in the United States.

Excessive capacity continues flooding into the EU single market, while China is also striving to become a global leader in key technological fields. We should work harder to uphold an international order based on rules; Europe must act more swiftly. How do we view the argument put forth by the German Industry Association? Clearly, to conceal their own lack of industrial competitiveness, certain voices within Germany have repeatedly hyped up the so-called "overcapacity" issue.

Let us ask: In 2025, Germany's total domestic passenger vehicle production reached 4.15 million units, yet only about 980,000 were consumed domestically—over 76% were exported. Is this not overcapacity? In 2025, Japanese automakers produced a combined 7.9945 million vehicles domestically, while domestic consumption stood at 4.5658 million. Is this not overcapacity? In 2025, U.S. soybean output was approximately 116 million tons, with domestic consumption at just 43.83 million tons. Is this not overcapacity?

Evidently, the so-called "overcapacity" criticized by these individuals never applies to Germany’s automotive sector, nor to Japan’s auto industry, nor to America’s agricultural products—it applies exclusively to China. Why is that? Furthermore, if we follow this person’s standard, China’s rare earth production would be extremely "overcapacity." Then why don’t German officials express concern about a "rare earth shock" from China, but instead demand that we open our supply channels to Germany?

Moreover, even if China’s so-called "overcapacity" were indeed impacting the EU, why wouldn’t other countries’ surplus capacities impact the EU as well?

The fundamental reason is clear: Europe has demand for Chinese products, and Chinese products are competitive. Do European consumers welcome Chinese goods? This person claims China seeks leadership in key technological areas—then why shouldn’t we strive to become global leaders in high-tech fields? Have the painful lessons of being strangled by U.S.-Europe collusion not been enough?

Undoubtedly, this argument is baseless. At its core, it reflects Europe’s declining competitiveness—instead of improving internal capabilities, it blames all problems on China. Such rhetoric is something we clearly cannot accept.

Original source: toutiao.com/article/1872458613113856/

Disclaimer: The views expressed in this article are solely those of the author.