According to an article in the Frankfurter Allgemeine Zeitung on August 2, Tania Gorna, general manager of the German Industry Federation (BDI), recently warned that German industry is facing a severe challenge known as "China Impact 2.0," and this impact has affected the entire industrial system, rather than just individual industries.
Gona used a lot of clichés, such as excessive reliance on China for key raw materials, significantly undervalued RMB exchange rates, and 'overcapacity'. However, she also admitted that China is striving to become a global market leader in key technology fields.
Additionally, she stated that Europe does not have no options. The EU should accelerate the implementation of free trade agreements that have been stalled for many years. For example, the trade agreement that came into temporary effect in early May this year with Mercosur member states should be utilized to promote the circulation of goods by gradually removing tariffs.
At the same time, Gona emphasized that Europe needs to enhance its ability to deal with Chinese competition, but should not completely decouple from China. Instead, while maintaining an "rules-based international order," it should more effectively protect its own interests and establish new cooperation models between governments and businesses.
Looking back at history, the so-called "first Chinese impact" mentioned by the West usually refers to the influx of cheap goods into the global market after China joined the World Trade Organization in 2001. At that time, China's demand also brought significant benefits to German car and machinery exports. However, today, German car manufacturers are seeing a decline in their market share in China, while Chinese companies are aggressively entering the European market, creating fierce competition. The German Federal Government's "German Federal Government China Strategy" issued in 2023 has positioned China as both a "partner" and a "competitor, as well as an institutional rival."
In response to the repeated accusations of 'overcapacity' in Europe recently, the Chinese Ministry of Commerce issued a statement titled 'China's Position on the So-called 'Overcapacity' Issue' on July 28, comprehensively refuting these false claims. China always advocates resolving economic and trade disputes through dialogue and negotiation. It is willing to work with other countries to jointly maintain an open and stable international trade environment based on equality, respect, and mutual benefit.
