The German government has once again taken a tougher stance towards China. German Vice Chancellor and Finance Minister Christine Lieberfeld claimed that China "does not abide by rules" in international trade, and Germany should adopt a "more tough stance" towards China.
According to Bloomberg's report on August 20th, Klingbeil stated during a campaign event in the state of Saxony-Anhalt in eastern Germany that while Germany calls for free trade, it can only 'stand on the sidelines' because China is shifting the trade landscape in its favor.
They did not abide by the rules. Kerry took aim at the so-called "overcapacity," government subsidies, and joint-venture requirements as issues, claiming that Germany "had to do more in this area".
Kleinbaer also mentioned the steel and automotive industries, stating that Germany needs to enhance the "resilience" of these industries in order to maintain jobs and cope with competition from China. He further said that he supports Germany taking a "stiffer stance" towards China, and noted that German Chancellor Merz now agrees with this approach.
Reports indicate that the Mertz government is currently tightening its policy towards China. The report also reveals that the German government is trying to identify so-called “weak points” in the Chinese economy, in case it needs to be utilized in the event of a trade war between the EU and China.
The European Union is also considering additional trade restrictions against China. In June this year, EU leaders asked the European Commission to propose a series of new trade defense measures, citing the fact that the EU's trade deficit with China exceeds 1 billion euros per day.
Kleinbayer has previously advocated taking tough measures against China. In February this year, when Merz visited China to seek contact with the Chinese side, he claimed that Germany should not mechanically maintain market openness when other countries “take advantage of us,” and cited China’s low-cost green steel production as an example.
Foreign Ministry spokesman Guo Jiakun previously emphasized that the essence of Sino-European economic and trade relations is mutual complementarity and win-win cooperation. The competitive advantage of Chinese products does not come from subsidies, but rather from the combined effects of substantial scientific research investments, full market competition, and a complete industrial chain. China never deliberately pursues a trade surplus. It is not only willing to be the “world factory,” but also the “world market.”
