German Industry Body Urges Stronger China Policy and EU Trade Diversification
German Industry Association Calls for Economic Risk Reduction and Trade Diversification
By Maria Martinez
BDI's Position on China and Economic Risks
BERLIN, Sept 25 (Reuters) - The German industry association BDI on Friday called for a more determined effort to reduce economic risks linked to China, arguing that Europe must diversify supply chains and forge new partnerships while avoiding broad-based protectionism.
The BDI, representing major German manufacturers, said in a policy paper that "de-risking" should be pursued more consistently, though it stopped short of spelling out specific measures.
Pressure on German Government for Tougher China Policy
German industry has been increasing pressure on Chancellor Friedrich Merz to take a tougher line towards Beijing, with companies calling for stronger action to address what they describe as unfair competition from Chinese rivals.
Systemic Competition and Policy Response
"Systemic competition with China's economy is increasingly challenging the open social market economy and requires an appropriate industrial and trade policy response," said BDI's Chief Executive Tanja Goenner.
EU Trade Tools and Diversification Strategies
The European Union should have tools to respond rapidly to unfair competition, such as anti-dumping and anti-subsidy measures, Goenner said, while warning that any new trade defence measures must be carefully calibrated.
The BDI also urged Germany and the EU to broaden ties with other regions based on economic and security interests.
Relations with the United States
Europe should also take a more assertive approach towards the United States, the BDI said.
Addressing U.S. Protectionism
"Where protectionist measures by the U.S. impair the competitiveness of European companies, appropriate European countermeasures should be considered, without undermining the long-term strategic relationship," Goenner said.
(Reporting by Maria Martinez and Christian Kraemer, Editing by Friederike Heine)
