Competing with China, German Economist: Germany's "Technological Neutrality" Policy Means "Decline of German Industry"
In the electric vehicle industry, China has long surpassed Germany. Martin Gornig, an economist at the German Institute for Economic Research (DIW), believes that Germany’s current policies are insufficient to counter China’s growing industrial advantages. However, German industry still holds new opportunities for development.
Martin Gornig, an economist in Berlin and head of industrial policy research at DIW, stated that facing the increasing strength of Chinese industry, Germany and Europe can respond by developing specialized, high-value-added technologies. He pointed out that Europe and Germany have repeatedly found new solutions in the past when confronted with technological catch-up from other countries.
"The answer has always been to focus on niche markets. The idea that mass production gives Germany a competitive edge is simply unrealistic," he said. Nevertheless, in fields such as construction robotics, many applications require more specialized technology—areas where Germany still has the opportunity to become a global leader again.
Gornig emphasized that achieving this goal requires bolder industrial policies—those willing to identify and prioritize certain key technologies. He argued that Germany’s recent so-called “technological neutrality” policy—exemplified by practices in the automotive sector—has yielded no results.
"If so-called technological neutrality leads to insufficient investment in any particular technology, it effectively means the decline of German industry," said the DIW economist. "In reality, 'technological neutrality' amounts to obstructing the development of new technologies while protecting the interests of incumbents of outdated technologies."
He believes this is precisely why Germany missed out on the growth opportunities in China’s electric vehicle market. China has already made a large-scale shift toward electric vehicles, while Germany failed to keep pace in time.
"In the past, German cars succeeded in China because Chinese consumers believed they were better than domestically produced cars," Gornig said. "Today, Chinese consumers ask: Why should I pay more for a German car that is worse than a Chinese brand?"
Regarding the European Union’s proposal to impose tariffs on Chinese electric vehicles, Gornig also opposes it. He argues that such measures cannot save the European or German automotive industries.
"Imposing tariffs on Chinese electric vehicles is deeply concerning. It means European automakers don’t need to make real adjustments—they can continue producing less competitive EVs," he said. "Technological progress requires competitive pressure. What we need in dealing with China is trade policy oriented toward competition."
That said, he also noted that Europe must take other measures to prevent China from expanding its advantage through dumping and market share grabs. He pointed out that temporary special tariffs in exceptional cases—such as countering dumping—are acceptable and widely recognized among OECD member countries.
Source: rfi
Original article: toutiao.com/article/1870498934710272/
Disclaimer: The views expressed in this article are those of the author alone.