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[BUSINESS] · Germany, China, France · 3 sources

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Germany plans economic security measures to reduce dependence on China

Germany is preparing a comprehensive economic security package aimed at reducing its strategic dependence on China. The initiative, led by Chancellor Friedrich Merz’s government, is expected to be submitted for cabinet approval on October 14, 2026.

Key components of the proposed measures include the imposition of new tariffs on Chinese plug-in hybrid electric vehicles, stricter investment screening for incoming and outgoing capital, and expanded export controls on sensitive technologies. The government is also considering mandatory joint ventures for certain investments to protect domestic industries.

Berlin is coordinating with Paris to present a joint document at the upcoming EU summit in Brussels, seeking broader European support for these restrictions. This shift in policy comes as German industrial firms report increasing pressure from state-subsidized Chinese competitors, with 83% of industrial companies citing Chinese competition as a growing concern.

Entities

China · European Union · France · Friedrich Merz · Germany · Volkswagen

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