German Industry Intensifies Pressure on Chancellor Merz to Adopt a Tougher Stance Toward Beijing
Reuters, Berlin, 28th: German industry is stepping up pressure on Chancellor Merz to adopt a tougher stance toward Beijing; companies are calling for stronger measures to address what they describe as unfair competition from Chinese rivals.
The increasingly firm attitude among German business leaders marks a shift in the country’s position—previously Germany had long resisted EU trade barrier policies out of concern over potential retaliation from China. With EU negotiations with Beijing scheduled for October, Berlin’s approach will help shape the EU’s overall trade stance toward China.
A June report by the OECD revealed that, based on revenue, Chinese manufacturers receive state support 3 to 8 times higher than their OECD counterparts, and this subsidy accounts for nearly 60% of their global market share growth.
Last year, Germany’s trade deficit with its largest trading partner, China, widened by about €22 billion to €89.3 billion, driven by an 8.8% increase in imports and a 9.7% decline in exports.
Träger, foreign trade director at the German Chambers of Industry and Commerce (DIHK), said: “We need to discuss the current situation with China. If it’s confirmed that this stems from subsidies or unfair competition, then it becomes a serious issue.”
This concern is particularly urgent for German automakers like Volkswagen. These companies are not only being overtaken by domestic brands such as BYD in the Chinese market, but now also face intensifying competition from Chinese rivals in the European market.
The governing coalition led by Merz has adopted a tougher tone regarding China, yet its message remains contradictory: while calling for reduced economic dependence, it still maintains that China remains an important economic partner.
Original article: toutiao.com/article/1874788391859401/
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