Germany industry group calls for stronger China policy

The German industry association BDI has called for a more determined effort to reduce economic risks linked to China. The group represents major German manufacturers and argues that Europe must diversify supply chains and forge new partnerships without resorting to broad-based protectionism.

In a policy paper, the BDI said 'de-risking' should be pursued more consistently, though it did not specify particular measures. The association has been increasing pressure on Chancellor Friedrich Merz to adopt a tougher stance toward Beijing.

German industry leaders describe unfair competition from Chinese rivals as a growing concern. BDI's Chief Executive Tanja Goenner stated that systemic competition with China's economy is increasingly challenging the open social market economy and demands a suitable industrial and trade policy response.

Goenner also emphasized the need for the European Union to have rapid-response tools against unfair competition, such as anti-dumping and anti-subsidy measures. She warned that any new trade defense measures must be carefully calibrated.

In addition to addressing China, the BDI urged Germany and the EU to expand economic and security ties with other regions. The group also called for a more assertive approach toward the United States.

Goenner noted that where U.S. protectionist measures harm European companies, appropriate countermeasures should be considered, while maintaining the long-term strategic relationship between the EU and the U.S.