German industry association pushes for Europe to diversify away from China

Berlin: Germany's largest industry association, the BDI, has called for Europe to reduce its dependence on China's economy. The BDI argues that diversifying supply chains is crucial to mitigating economic risks associated with China. However, the association has not specified any particular actions to achieve this goal. German manufacturers are increasingly urging Chancellor Friedrich Merz to adopt a more aggressive stance against China, citing concerns over unfair competition.

Tanja Goenner, BDI's chief executive, has emphasized the need for the EU to develop rapid response tools, such as anti-dumping and anti-subsidy measures, to counteract unfair competition from China. However, she stresses that any new trade defense measures must be carefully balanced to avoid harming legitimate European businesses.

The BDI also advocates for Europe to strengthen its partnerships with other regions, taking into account both economic and security interests. Furthermore, the association suggests that Europe should adopt a more assertive stance towards the United States, particularly if American protectionist policies hinder the competitiveness of European companies.

Yet, Goenner cautions against undermining long-term strategic ties between Europe and the US in such circumstances.