The German main industrial interest representative organization, the Federation of German Industries (BDI), released a policy document on September 25, urging the German government and the European Union to more firmly reduce the risks associated with economic dealings with China. They suggested enhancing industrial resilience through diversifying the supply chain and exploring new economic and trade partners.
In the document named “Principles of Economic and Trade Policies,” BDI pointed out that “de-risking” is still the correct direction but must be implemented more consistently and rigorously. Representing around 100,000 companies, the document is positioned as a common guiding principle for the coming years.
BDI’s CEO Tanja Gönner emphasized that the “systemic competition” brought by the Chinese economy poses increasingly severe challenges to Europe’s open social market economy. She urgently called for the EU to make an active and reciprocal response in industrial and trade policies. Gönner urged the EU to have swift tools to address unfair competition, such as anti-dumping and anti-subsidy measures, but cautioned that any new trade defense measures need careful assessment to avoid triggering widespread protectionism.
Pressure has been mounting on German Chancellor Friedrich Merz from the German industrial sector to adopt a tougher stance towards China. Companies commonly complain about the “increasingly unfair competition” from Chinese counterparts and hope that the government will take concrete actions.
A survey conducted by the Association of German Chambers of Industry and Commerce (DIHK) from July to August 2026 showed that about two-thirds of the surveyed companies feel the growing competitive pressure from Chinese enterprises, with 35% considering the pressure as “strong” or “very strong.” Industrial companies are particularly affected, with key issues being government subsidies, priority access to critical raw materials, intellectual property issues, and market access restrictions.
An analysis issued by the European Central Bank (ECB) on September 22 also pointed out that China’s increasing industrial capabilities are having a greater impact on the European manufacturing sector. Germany, due to its export structure being similar to China’s in areas like machinery and transportation equipment, faces more direct competition in high value-added and technology-intensive product sectors. China is not only squeezing the market shares of European companies in the global market but also reducing the demand for European industrial products.
BDI emphasized that China remains an important market, production base, and innovative cooperation partner for many German companies. However, factors such as China’s industrial policies, overcapacity issues, and export controls are changing the competitive environment between the two sides. The organization firmly advocates for “de-risking.”
Apart from its China policy, BDI also called on Germany and the EU to expand cooperation with other regions based on economic and security interests and to adopt a more active and interest-driven approach towards the United States. Gönner stated that if the U.S.’ unilateral protectionist measures harm the competitiveness of European companies, Europe should consider corresponding countermeasures, but the bottom line is not to shake the long-term strategic partnership between Europe and the U.S.
Throughout this year, BDI has continuously emphasized the need for Germany and Europe to seek a balance between reducing reliance on China and maintaining economic and trade cooperation. The organization has also reiterated multiple times before and after Merz’s visit to China that strategic interests should be preserved collectively while promoting “de-risking” and constructive economic cooperation.
(Reference: Reuters report)