[REVISION HISTORY]

German drive for tougher EU China trade policy

Updated 12 times since CLSTR started tracking revisions of this situation.

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2026-09-16 16:17 UTC → 2026-09-18 10:53 UTC · added ~~removed~~

In early September 2026, new data underscored the intensifying competitive landscape. Beijing customs authorities reported that Chinese exports rose by 25 percent in August compared to the previous year, driven by sectors such as vehicle exports and artificial intelligence components. In Germany, an IHK survey in North Rhine-Westphalia found that 76 percent of surveyed companies perceive rising competition, a figure that reaches 90 percent among those exporting to China. In response to these pressures, the government of Chancellor Friedrich Merz is preparing an extensive economic security package designed to reduce strategic and economic dependencies on China. The proposed measures, which are currently being processed by German ministries, may include new tariffs on Chinese plug-in hybrid vehicles, stricter oversight of Chinese investments, and tighter controls on the export of sensitive technologies. Beyond tariffs and export controls, the government is considering mandatory joint ventures for certain investments to protect domestic industries. The government intends to seek cabinet approval for these measures on October 14, with the goal of securing broader support from the European Union at an upcoming summit in Brussels. Berlin is coordinating with Paris to present a joint document at the summit, signaling a hardening of Germany’s stance toward Beijing. ~~This shift in policy marks a significant departure~~ Recent industry data further highlights this tension. A DIHK survey indicates 67 percent of German companies feel stronger competition from ~~Germany's historically more cautious approach toward its economic ties with Beijing. As~~ China, rising to 78 percent in Bavaria. The VDMA has called for the ~~policy debate evolves, German~~ EU to implement compensatory tariffs to counter state subsidies and dumping. Amidst these pressures, industry leaders are ~~discussing~~ debating structural ~~shifts to combat deindustrialization. Some suggest~~ shifts, such as transitioning automotive ~~and supplier~~ capacities toward defense production as an economic lifeline. Additionally, political figures like Cem Özdemir have called for fairer competitive conditions within the EU to address Chinese overcapacity. To support the automotive sector, there are also proposals to flexibilize and reducing 2035 CO2 fleet emission ~~targets, such as reducing the 2035 reduction goal~~ targets from 100 percent to 90 percent to ensure ~~industry~~ industrial survival.

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