Advertisement
China trade
EconomyGlobal Economy

German firms back tougher EU trade measures on China despite business risks

The DIHK finds German firms facing Chinese competition back stronger EU action, but its trade chief warns against ‘blanket measures’

3-MIN READ3-MIN
8
Listen
German companies are backing tougher EU action on China as manufacturers such as Volkswagen restructure under intensifying competition from Chinese rivals. Photo: Reuters
Huizhao Huangin BerlinandXiaofei Xuin Paris

More than half of German companies said the European Union should take stronger trade measures against China even if their own businesses would suffer higher prices, tariffs or retaliation, according to a survey of about 1,300 German firms published by the German Chamber of Commerce and Industry (DIHK) on Thursday.

That tougher stance comes despite many German companies acknowledging their reliance on Chinese supply chains and production sites for their own competitiveness.

Among companies with their own operations in China, support for tougher measures stood at 49 per cent, still ahead of the 46 per cent that opposed them.

Competition from Chinese rivals was widespread across sectors, with two-thirds of respondents reporting an increase. The industrial sector – including machinery and automotive – was hit hardest: 83 per cent of those surveyed reported greater competition, and half described the pressure as strong or very strong.
The survey came as Brussels and Beijing face the risk of a trade war ahead of an October deadline for tangible progress on economic disputes, as Berlin moves towards a more defensive posture. Chancellor Friedrich Merz said last week that German industry had “apparently changed its opinion” on global imbalances, and asked his cabinet to draw up proposals to address the trade imbalance with China.

“Europe must decisively address and counter distortions of competition,” said Dr Volker Treier, DIHK’s head of foreign trade. “But it must not harm itself with blanket measures.”

Advertisement
Select Voice
Select Speed
1.00x