Germany industry association pushes for tougher China policy

The German ​industry association BDI on Friday ​called for a more ‌determined effort ​to reduce economic risks linked to China, arguing that Europe must diversify supply chains and forge ‌new partnerships while avoiding broad-based protectionism.

The BDI, representing major German manufacturers, said in a policy paper that "de-risking" should be pursued more consistently, though it stopped ‌short of spelling out specific measures. German industry has been increasing pressure on ‌Chancellor Friedrich Merz to take a tougher line towards Beijing, with companies calling for stronger action to address what they describe as unfair competition from Chinese rivals.

"Systemic competition ⁠with ​China's economy is ⁠increasingly challenging the open social market economy and requires an appropriate industrial and trade policy ⁠response," said BDI's Chief Executive Tanja Goenner. The European Union should have tools to ​respond rapidly to unfair competition, such as anti-dumping and anti-subsidy measures, Goenner ⁠said, while warning that any new trade defence measures must be carefully calibrated.

The BDI ⁠also ​urged Germany and the EU to broaden ties with other regions based on economic and security interests. Europe should also take a ⁠more assertive approach towards the United States, the BDI said.

"Where protectionist measures ⁠by the ⁠U.S. impair the competitiveness of European companies, appropriate European countermeasures should be considered, without undermining the long-term strategic relationship," Goenner ‌said.