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Germany Takes Tough Stance on China Amidst Trade Disputes

The German government has once again taken a tough stance towards China. According to Bloomberg's report on September 2nd, German Finance Minister Christian Pegenberg stated that Germany plans to implement a package of measures against China within the next few weeks, in response to what he called "unfair trade practices."

On that day, after visiting the factory of German automaker BMW in South Carolina, USA, Klimbeer claimed that German manufacturers are becoming increasingly tough towards China, which has led the Mertz government to adopt a more assertive approach. He said, "You can see that there is also a shift in the German industrial community, and people are looking at China with a more critical perspective. I believe this also motivates us to formulate a clearer policy towards China."

Kleinbeer added that Germany does not seek confrontation, but claims that China is 'no longer following rules', and that Germany 'must change its strategy'.

According to his revelation, the measures that Germany may take include: requiring Chinese companies seeking access to the German or European market to establish joint ventures; imposing additional tariffs on sectors such as hybrid vehicles; and prioritizing the purchase of goods produced in Germany or other European countries through the so-called “Buy European” strategy. Klingbeil said that the measures agreed upon by the German government will then be pushed forward to the EU level.

According to a report by Reuters earlier this month, at the end of August, German Chancellor Merz said that he had asked his cabinet to study the issue of so-called ‘trade imbalance’ between Europe and China. He specifically mentioned that the attitudes of organizations such as the German Automobile Industry Association (VDA) are changing.

Reports say that Germany has long relied on exports. The business community has always been wary of setting trade barriers, fearing that this could lead to countermeasures from China and harm its interests in China. Now, as Chinese companies develop rapidly in areas such as automobiles, some German industry associations are reconsidering their previous opposition to protective measures. “This change is particularly noteworthy.”

Currently, countries such as France, Italy, and Spain are advocating for the EU to strengthen trade defense measures. Germany did not participate initially, but sources familiar with the situation say that Merz has sent a signal of support: if there is no progress in the EU-China trade negotiations in October, the EU should be prepared for a set of countermeasures.

Regarding the so-called "Chinese subsidies" and exchange rate advantages that have been hyped up by the West for a long time, China has repeatedly refuted these claims and opposes the adoption of protectionist measures under the pretext of "fair competition". Reuters also mentioned that China denies using unfair subsidies or lowering the RMB exchange rate to gain an export advantage.

Foreign Ministry spokesman Guo Jiaqun previously emphasized that the essence of Sino-European economic and trade relations is mutual complementarity and win-win cooperation. The competitive edge of Chinese products does not come from subsidies, but rather from the combined effects of extensive 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's factory,” but also the “world's market.”