VDMA Urges Stronger EU Actions Against Unfair Chinese Competition

Germany's VDMA engineering body calls on the EU to expedite action against unfair Chinese competition, suggesting countervailing duties and new trade case evaluations. They emphasize the need to prevent European manufacturers from facing competitive disadvantages due to market distortions by Chinese firms.

The VDMA engineering body in Germany has called for the European Union to take swift and robust actions against what it perceives as unfair competition from China. In a recent position paper, VDMA suggested employing countervailing duties on specific product groups and recommended changing the way trade cases are evaluated.

Market distortions by Chinese companies are a well-documented issue, and VDMA President Bertram Kawlath plans to push this agenda forward in Brussels this week. The EU grapples with a significant trade deficit with China, amounting to approximately €1 billion daily, exacerbated by reliance on exports and critical supplies from the Asian giant.

The industry group advocates for additional market surveillance and a shift in the burden of proof for countervailing duties towards Chinese companies, urging stronger defenses without resorting to import quotas, which could have broader international implications. Revenues from such trade measures should bolster innovation and assist firms impacted by any retaliatory measures.