German Industry Braces for New “China Shock 2.0” as BDI Warns

The Bundesverband der Deutschen Industrie (BDI) warned that a “China shock 2.0” is hitting German industry across the board. BDI chief executive Tanja Gönner said the new shock stems from China’s undervalued currency, state‑driven overcapacity, dependence on critical raw materials and a push to dominate key technologies, echoing the first shock that followed China’s WTO accession in 2001.

Gönner called for Europe to reinforce rule‑based trade, accelerate trade agreements such as the recently provisional Mercosur deal, and develop new forms of cooperation between politics and business to counter the pressure on German firms.