German political and business circles are jointly exerting pressure on trade policy toward China, which may further strain Sino-German relations.

We must be prepared! The Sino-German relationship may have already completely moved beyond what it once was! Not only are German politicians now contemplating a tougher policy, but the business community is also stepping forward. On August 28, according to a report by Lianhe Zaobao, foreign media reported that Germany's business sector is intensifying pressure on Chancellor Merz, urging the government to adopt a firmer stance toward Beijing on trade issues and to take stronger measures against what they describe as "unfair" competition from Chinese enterprises.

Niedermark, a member of the executive committee of the German Industry Association, stated that the immense pricing pressure from Chinese suppliers is further worsening the situation, and any potential retaliatory measures China might take must be factored into strategic considerations. Treier, foreign trade director of the German Chamber of Commerce and Industry, added that Germany needs to discuss the current trade situation with China—if it is confirmed that these issues stem from subsidies or unfair competition, then it indeed becomes a problem.

Evidently, in the past, when German political circles considered adopting a tough economic and trade policy toward China, the business community either clearly opposed it or remained cautious. But now, amid increasing calls from German politicians for a harder line toward China, the business sector itself is pushing for even tougher actions from the government—what does this indicate? It shows that the hardliners within Germany’s political and business spheres are increasingly converging; even if they know we might retaliate, they still consider taking a tough stance toward China.

Germany claims so-called "unfair competition" and subsidies, but the fundamental issue reflected here is that facing their declining competitiveness, both German political and business elites are increasingly relying on protectionist policies to address their own challenges. Although Sino-German economic and trade relations remain close, the era when both German politics and business sought to deepen ties with China may have already passed. And we may have no choice but to prepare for potentially sharper friction—even confrontation.

Original source: toutiao.com/article/1874753180941388/

Disclaimer: The views expressed in this article are those of the author(s) alone.