German industry is increasing pressure on German Chancellor Friedrich Merz to take a tougher line with Beijing, with companies calling for greater action to address what they describe as unfair competition from Chinese rivals.The growing assertiveness from German business representatives marks a shift in a country that long resisted trade barriers for fear of Chinese retaliation. How Berlin positions itself will help shape the EU’s broader trade stance toward China, with talks between the bloc and Beijing scheduled for October.An Organisation for Economic Co-operation and Development (OECD) report published in June said that Chinese manufacturers received three to eight times more state support than OECD rivals relative to revenue, with subsidies accounting for nearly 60 percent of their global market-share gains.
German Chancellor Friedrich Merz attends a meeting at the Chancellery in Berlin on Thursday.
Germany’s trade deficit with its biggest trading partner widened by about 22 billion euros (US$25.6 billion) last year to 89.3 billion euros as imports into the European country rose 8.8 percent and exports fell 9.7 percent.“We need to discuss with China what is happening. If it is confirmed that this is attributable to subsidies or unfair competition, then it is an issue,” said Volker Treier, head of foreign trade at the German Chamber of Commerce and Industry.
