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German manufacturers urge EU to lessen reliance on China and diversify trade

The BDI called for a stronger "de-risking" strategy, asking the EU and Germany to broaden economic ties beyond China and to use trade-defence tools when needed.

The German industry federation BDI released a policy brief urging the EU and Germany to adopt a more systematic de-risking approach toward China, without outlining concrete steps. BDI chief executive Tanja Goenner argued that systemic competition from China is increasingly challenging the open social market economy, calling for swift trade-defence tools such as anti-dumping and anti-subsidy actions, while stressing the need for careful calibration.

The paper also pressed for broader economic and security cooperation with regions beyond China, and suggested a more assertive stance toward the United States when protectionist measures hurt European competitiveness. Goenner emphasized that any counter-measures should not jeopardise the long-term strategic US-EU relationship. The call reflects growing pressure on Chancellor Friedrich Merz to adopt a tougher line on Beijing.

Why it matters

Europe's reliance on China affects its economic security and competitiveness, prompting calls for diversified trade policies.

In this story

de-riskingtrade defenceanti-dumpinganti-subsidyindustrial policyeconomic diversificationChina competitionUS protectionism
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