German Media: Germany’s Parliamentary “China Committee” Recommends EU Prepare Stronger Trade Policy Tools Against China

The expert committee established by the German Bundestag recommends that the EU must prepare more robust trade policy instruments at the European level to enable effective countermeasures should China escalate trade disputes. In its first semi-annual report, the committee notes that Germany’s economic security situation regarding China has generally deteriorated, with increasing supply chain dependencies, and concludes that the strategy of positioning China as a “partner, competitor, and systemic rival” has failed.

Experts commissioned by the German Bundestag argue that stronger tools for dealing with China must be prepared at the European level. The committee tasked with reviewing economic security relations between Germany and China stated in its inaugural semi-annual report: “If China escalates trade disputes, the EU must be capable of implementing retaliatory measures.”

The report further observes: “Given China’s export-oriented economic model, conditioning access to the European single market represents a key leverage instrument.” This expert assessment was reported by *Die Welt* in its Sunday edition.

The committee comprises professionals from 13 institutions, including academics, foundation representatives, corporate lobbyists, and union figures. The Bundestag decided to establish this body in November 2025.

Experts note that since its inception, Germany’s economic security posture toward China has worsened overall. The report states: “Dependency of German supply chains on China has intensified; China’s potential influence over Germany’s critical infrastructure remains substantial, and technological ties—particularly in sensitive sectors—remain close.” The committee warns that failure to take effective action will result in rising costs of inaction.

According to the document, the strategy of characterizing China as a “partner, competitor, and systemic rival” has proven ineffective: “From Germany’s and Europe’s perspective, competitive dynamics and growing risks have increasingly overshadowed other dimensions of bilateral relations.” There is mounting evidence of Beijing’s willingness and capacity to use economic interdependence as a tool of pressure. “China is deliberately building leverage points and has repeatedly demonstrated its readiness to deploy them.”

Thus, establishing a coordinated framework for collective action within the EU is deemed essential. Response strategies toward China must be aligned both at the national level among member states and at the EU level. Experts emphasize: “No single EU member state can independently address the challenges posed by various Chinese actors.”

President of German Industry Association: Firm Defense of Interests

The German Industry Association (BDI) is also a member of the committee. In a guest article published in *Die Welt*’s Sunday edition, BDI President Peter Leibinger wrote: “The EU must continue dialogue with China, but must also firmly defend its own economic interests.” He calls for faster and more consistent application of tools targeting dumping and unfair subsidies.

Last Friday, the EU reached an agreement with China in their trade dispute, under which Beijing agreed to reduce exports of plug-in hybrid vehicles to Europe. Committee member Jürgen Matthes from the Cologne-based German Institute for Economic Research criticized this outcome. Speaking to *Spiegel*, he stated: “Imposing anti-subsidy duties on Chinese imports threatening European production would be a more effective and targeted response to China’s serious distortion of competition.” He argues such tariffs could eliminate artificially low pricing advantages enjoyed by Chinese manufacturers.

Source: DW

Original: toutiao.com/article/1878795893552140/

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