German machinery sector urges EU tariffs against unfair Chinese competition

The German engineering association VDMA is demanding stronger protection from what it calls unfair competition by Chinese manufacturers. In a revised position paper, the group proposes the introduction of sector‑wide countervailing duties – "Ausgleichszölle" – for product groups such as construction machinery wherever there are clear indications of distorted trade practices.

VDMA officials argue that the European Commission’s current approach, which examines each product individually, is too slow. "It would take decades to offset all unfair advantages. We don’t have that time," said VDMA foreign trade adviser Oliver Richtberg. The association also wants the burden of proof shifted to Chinese firms, stating that companies should be required to demonstrate they are not benefiting from unfair subsidies when sufficient evidence exists.

The lobbying comes as China has overtaken Germany as the world’s largest exporter of machinery, supported by state subsidies that allow Chinese firms to offer technologically advanced equipment at low prices. In addition to tighter customs rules, VDMA is calling for reduced bureaucracy, tax relief and greater support for strategically important technologies in Europe.