German Industry Body Urges Berlin to Step Up China De-Risking

Germany's leading industry association has pressed for a more resolute approach to reducing economic risks connected to China, arguing that Europe needs to diversify its supply chains and build new partnerships without resorting to wide-ranging protectionism.

In a policy paper, the BDI, which represents major German manufacturers, said the strategy known as "de-risking" should be pursued more consistently, though it did not set out specific measures.

The association's intervention adds to mounting pressure on Chancellor Friedrich Merz from German industry to adopt a firmer stance towards Beijing, with companies seeking stronger action against what they describe as unfair competition from Chinese rivals.

"Systemic competition with China's economy is increasingly challenging the open social market economy and requires an appropriate industrial and trade policy response," BDI Chief Executive Tanja Goenner said.

Goenner said the European Union should have tools to react quickly to unfair competition, including anti-dumping and anti-subsidy measures, while warning that any new trade defence steps must be carefully calibrated.

The BDI also called on Germany and the EU to widen their ties with other regions on the basis of economic and security interests.

Beyond China, the association urged Europe to take a more assertive approach towards the United States. Goenner said that where protectionist measures by Washington harm the competitiveness of European companies, suitable European countermeasures should be considered, without damaging the long-term strategic relationship.