German industry is voicing increasing concern over the surging export volumes from China, raising questions about the long-term stability of the economic landscape. As domestic demand within China weakens, Chinese firms are increasingly seeking opportunities in international markets, employing what one industry representative described as “aggressive tactics.
Wolfgang Niedermark, a member of the executive board of the Federation of German Industries (BDI), told “Der Spiegel” that instances of price dumping and violations of intellectual property rights are becoming more frequent. He explained that Chinese companies are producing at a level far exceeding the capacity of their domestic market. This phenomenon isn’t limited to sectors like steel, solar technology and batteries, but is now extending to areas including wind power, electric vehicles, mechanical engineering, chemicals and semiconductors.
“These systematically created overcapacities distort competition, endanger the stability of global markets and represent one of the largest risks for the industrial location of Germany and Europe in the medium to long term” Niedermark stated.
The situation is further complicated by a trend of market protectionism. The United States is increasingly restricting trade with China and developing nations in Asia and South America are implementing their own protective measures. This evolving global environment raises the possibility of trade flows being redirected toward the European Union. The potential for significant shifts in international commerce patterns is a key point of discussion amongst German industry leaders.