Germany Resists EU Members' Push for a Tougher Stance on China
The proposal targets state-subsidized Chinese goods as Germany warns tougher action could hurt its export-driven industries.
- German Trade Minister Katherina Reiche is travelling to China from Tuesday to Friday with a business delegation of around 40 companies as Berlin's trade deficit with Beijing deepens, two days after five EU member states urged tougher action on Chinese overcapacity.
- Germany lost around 124,100 industrial jobs in 2025, with only 15 per cent of citizens satisfied with Chancellor Merz's coalition and widespread discontent forcing Berlin to reconsider its long-standing preference for cooperation with Beijing.
- German exports to China fell 9.7% year-on-year while imports surged 8.8%, widening the record €87 billion trade deficit despite €250 billion in bilateral trade and around 5,200 German companies operating in the market.
- European Commission chief spokesperson Paula Pinho told Politico the EU push reflected a "necessary discussion" rather than targeting Germany, though diplomats privately questioned how Berlin could "plead for the status quo" amid factory closures.
- The European Commission's proposed "overcapacity instrument" faces debate on May 29, positioning Germany as the EU's main chokepoint on China strategy, even as 51 per cent of German companies in China support partnership policies.
17 Articles
17 Articles
Federal Minister of Economics Reiche has arrived in Beijing. During her visit, the CDU politician wants to represent German positions confidently.
Federal Minister of Economics Reiche is looking for dialogue with China in Beijing. However, rare earths, fair competition and the debate on tougher EU protection instruments show how difficult the course is.
Germany's dependence on China is growing. At the same time, the country limits the export of critical raw materials – a challenge for Katherina Reiche.
For Germany, China is the number one trading partner. That is why Minister Reiche wants to strengthen cooperation during her visit to the People's Republic, but the conditions must be right.
The Federal Minister for Economic Affairs has arrived for a visit to China, where she intends to continue the talks between Friedrich Merz and Xi Jinping in February.
Wirtschaftsministerin Reiche begins her visit to China in Beijing. For German companies, the market is extremely important – but the list of conflict points with the difficult trading partner is long.
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