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German industry steps up pressure for tougher China trade stance
Germanys trade deficit with China widened by about 22 billion euros last year to 89.3 billion euros, as imports rose and exports fell.
German industry groups are pressing Chancellor Friedrich Merz to adopt a tougher approach toward Beijing, arguing Chinese rivals benefit from unfair competition and state-backed support. The push signals a shift for Germany, which has historically resisted trade barriers over concerns about possible Chinese retaliation, according to Reuters.
The broader backdrop includes negotiations between the European Union and China scheduled for October, with Berlin shaping the blocs overall trade posture. An OECD report published in June found Chinese manufacturers received three to eight times more state support than OECD peers relative to revenue, with subsidies accounting for nearly 60% of global market share gains.
Trade data cited in the coverage shows Germanys trade deficit with China widened by around 22 billion euros last year to 89.3 billion euros, after imports rose 8.8% and exports fell 9.7%. Industry concerns are particularly acute for automakers, including Volkswagen, which has faced intensifying competition as Chinese brands such as BYD expand.
Merz has sharpened his language on China while keeping messages mixed, calling for reduced economic dependencies but describing China as an important partner. Reuters reports that Merz said he asked the cabinet to develop proposals to address EU China trade imbalances, after signals of division within his coalition and reconsideration by industry associations including the VDA.