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German industry presses Merz for tougher China policy
Companies say Chinese subsidies and pricing pressure are eroding German market share and want Berlin to prepare trade-defence measures.
- German industry increased pressure on Chancellor Friedrich Merz on Wednesday to adopt a tougher stance toward China, prompting the chancellor to ask his cabinet to develop proposals addressing trade imbalances between the European Union and China.
- Germany's trade deficit with its largest partner widened to €89.3 billion last year, as imports rose 8.8% while exports fell 9.7%. Automakers like Volkswagen now face intense competition from Chinese rivals such as BYD in the European market.
- An OECD report found subsidies account for nearly 60% of Chinese manufacturers' global market-share gains. Deutsche Bank analysts estimate an undervalued yuan allows Chinese firms to undercut German prices by 30% to 40%.
- Merz signaled support for Brussels to prepare trade-defense measures should October talks between the European Union and China fail. France, Italy, and Spain are among EU nations pushing the bloc to revamp its trade-defense framework.
- Matthias Bianchi of the German Association of the Mittelstand said companies fear retaliation, yet "doing nothing has also become a risk." This reflects Germany's shift from resisting trade barriers to recognizing competitive pressures.
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German industry presses Merz for tougher China policy
German industry is increasing pressure on Chancellor Friedrich Merz to take a tougher line with Beijing, with companies calling for stronger action to address what they describe as unfair competition from Chinese rivals.
·London, United Kingdom
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More and more voices are pressing for measures to be put in place to protect the interests of Europe.The industry of the first automobile-producing country demands that Chancellor Friedrich Merz carry out tougher measures against Beijing, there being signs of his government's position closer to those of Spain, France and Italy, among others.The German industry is dramatically increasing pressure on Chancellor Friedrich Merz to take a firmer stan…
Coverage Details
Total News Sources5
Leaning Left1Leaning Right0Center3Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
L 25%
C 75%
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