China export growth increases competition for German manufacturers

Chinese industrial strategy has led to a significant increase in exports, creating intense competition for German companies. According to a survey by the Association of German Chambers of Commerce and Industry (DIHK), 67 percent of German companies report feeling stronger competition from China, a figure that rises to 78 percent in Bavaria due to the region's heavy manufacturing focus.

Trade data highlights this shift: in August, Chinese exports to the EU grew by 6.6 percent compared to the previous year, while EU imports from China rose by only 0.7 percent. Specifically, exports to Germany increased by nearly 10 percent, while German imports from China saw a corresponding decline.

German industry representatives, including the Mechanical Engineering Industry Association (VDMA), have raised concerns regarding unfair competition. They cite state subsidies, dumping, and an artificially low currency as factors giving Chinese firms an advantage. The VDMA is calling on the European Union to implement compensatory tariffs and more strictly punish violations of EU regulations regarding machinery and equipment.