German Industry Urges Chancellor Merz to Adopt Tougher Stance Toward China
German industry leaders are urging Chancellor Friedrich Merz to adopt a tougher approach toward China, citing unfair competition from subsidized Chinese manufacturers. This shift reflects growing concerns among German businesses about trade imbalances and the impact of cheap imports on domestic industries such as automotive manufacturing. The pressure comes amid an expanding €89.3 billion trade deficit with China in 2025, driven by rising imports and falling exports. Reports indicate that Chinese manufacturers receive significantly more state support than their OECD counterparts, contributing to aggressive global market expansion. German automakers like Volkswagen are particularly affected as local brands such as BYD gain traction both domestically and internationally. Merz's government has begun addressing the issue with calls for proposals on trade imbalances between China and the EU. Industry representatives argue that existing WTO and EU tools can be used more effectively to protect European businesses, though they acknowledge potential Chinese retaliation must also be considered strategically.
Topics: China economic relations Germany trade policy unfair competition