The growing competitive pressure emanating from China is causing concern among German politicians. According to CDU politician Norbert Röttgen, China is pursuing an aggressive economic expansion course that disadvantages Europe. Speaking to the Handelsblatt, Röttgen warned that Beijing deliberately creates uneven competitive conditions-through non-transparent subsidy practices and the targeted devaluation of its own currency-and systematically bypasses international trade law. He emphasized that a clear counter-response is needed against this state-directed marginalization by Chinese companies, which includes protecting the European market.
The debate was fueled by a stark warning issued by the think tank Center for European Reform, which claims Germany is currently at the epicenter of a new “China shock”. That the ascent of China as an industrial export power has already cost Germany an estimated 400,000 jobs.
In response, Greens leader Franziska Brantner called for a major policy pivot. She argued that Germany needs a decisive trade policy line against unfair competition. Specific actions include consistent market surveillance, effective customs controls, and the rigid enforcement of European platform rules, especially targeting providers such as Temu and Shein. Brantner stated that any entity that systematically violates European standards or gains an advantage through dumping and circumvention should be barred from free access to the European market.
Meanwhile, the European Union is scheduled to discuss tougher measures in the coming weeks to combat what officials call China’s “export flood”. Commission President Ursula von der Leyen plans to align the next steps with her commissioners on May 29th. According to reports from the Handelsblatt, the Commission may also consider developing a new trade instrument that would allow it to impose broad tariffs across entire Chinese industries, rather than limiting tariffs to single products.