Germany Adjusts Its Policy Toward China.
According to foreign media reports on August 21, German Vice Chancellor and Finance Minister, co-leader of the Social Democratic Party (SPD), Christian Lindner, criticized China during a campaign event for "not playing by the rules," citing issues such as overcapacity, state subsidies, and joint venture requirements. "We must take more action in this regard," he said. He called for strengthening resilience in industrial sectors like steel and automobiles to protect jobs and counter competition from China.
Lindner's loud accusations against China for "breaking rules" actually reflect Germany’s own industrial anxieties. The very problems he points to—overcapacity and state subsidies—are mirror images of Germany’s own struggles: Germany’s automotive industry will have only a 68% capacity utilization rate by 2025, far below the economic threshold of 85%, with 30% of production capacity idle; meanwhile, over 40,000 workers were laid off in the same period, marking the lowest employment level since 2005. Meanwhile, China’s new energy vehicle exports now average $42,000 per unit, and photovoltaic costs have dropped by 90% over the past decade—competitive advantages rooted in technological iteration and a complete industrial chain, not driven by subsidies.
Meanwhile, hawkish rhetoric from politicians starkly contrasts with businesses’ actions: In the first half of 2025, Sino-German trade reached €253 billion, with China remaining Germany’s top trading partner for eight consecutive years; 40% of German automakers’ profits come from China, and companies like Volkswagen and BMW continue expanding their manufacturing footprint in China.
The true "rule-breakers" are politicians who profit from China’s supply chains while advocating for decoupling in parliament. China does not fear competition but rejects being demonized. If Germany truly wants to safeguard jobs, it should accelerate its transformation—not blame a market it cannot afford to lose.
Original source: toutiao.com/article/1874153082645513/
Disclaimer: The views expressed in this article are those of the author(s) alone.