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Huizhao Huang

Xiaofei Xu

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.”
Treier described competition from China as entering a “new dimension”. Chinese suppliers had closed much of the gap with German firms on technology and quality, the report said, and had even gained technological leadership in some sectors such as electric mobility.
As competition from China intensifies, two-thirds of companies called for a coordinated EU approach towards China, while 60 per cent wanted to reduce strategic dependencies. Nearly half backed excluding Chinese companies from critical infrastructure projects.
The pressure was closely linked to companies’ exposure to China. Among firms with their own operations or investments there, 88 per cent reported growing competition, compared with 38 per cent of those with no direct business ties to the country.
Europe must decisively address and counter distortions of competition. But it must not harm itself with blanket measures
Volker Treier, German Chamber of Commerce and Industry
Yet Treier cautioned that more competition did not necessarily mean less business in China. Only 12 per cent of companies facing stronger competition said they would consider exiting contested business lines. Half were cutting costs, while nearly a third planned to deepen cooperation with Chinese partners.
The report found China’s supply chains and production sites could be essential for some German companies to stay competitive. Some companies said, for example, that buying new machinery from China was cheaper than repairing existing equipment in Germany.
Treier also warned that trade defence could not compensate for home-made disadvantages. “If high energy and labour costs or excessive bureaucracy are holding our companies back, we have to solve those problems here,” he said.
“This is not a call for a trade war,” Treier said. “Companies want fair competition, not isolation.”
The impacts of rising Chinese competition are spilling over into the European labour market. Volkswagen Group announced on Thursday plans to slash another 50,000 jobs by 2030, citing intensifying competition and shifting demand, following similar reports of job cuts by carmakers including BMW.
Trade talks between the EU and China are ongoing. Vice-minister of commerce Ling Ji held talks in Beijing with the European Commission’s deputy director general for trade and economic security Denis Redonnet between August 31 and September 2.
A spokeswoman for China’s commerce ministry, Huang Ling, said on Thursday that trade talks between the two should address mutual concerns on an equal footing.
“There should be no unilateral demands or conditions, let alone threats of closing markets at the slightest pretext,” Huang said.
Additional reporting by Xinyi Wu


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


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


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

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The DIHK finds German firms facing Chinese competition back stronger EU action, but its trade chief warns against ‘blanket measures’

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