Business · Trade · 3 hrs ago
Germany shifts toward tougher trade measures against China
Germany is moving toward a tougher trade stance on China as pressure on its industries grows.
Chancellor Friedrich Merz and French President Emmanuel Macron have asked European Commission President Ursula von der Leyen to consider a tool that could cut a trading partner off from the EU single market over unfair practices.
The proposal is aimed at Beijing, which warned Europe it would face consequences if the EU adopted the measure.
Germany had long resisted a harder line because it feared retaliation against exporters, but officials now see the cost of inaction as greater.
Chinese competition is squeezing German manufacturers, especially in cars, precision engineering and chemicals, while German car exports to China fell 66% from 2022 to 2025.
At the same time, imports of Chinese-made cars into Germany rose 121% in the first seven months of 2026, and the EU’s goods deficit with China widened.
EU leaders are weighing stronger trade defenses, but other measures to protect European industry are facing difficulties.
Germany is showing greater willingness to support tougher European Union trade measures against China.
Chancellor Friedrich Merz and French President Emmanuel Macron asked European Commission President Ursula von der Leyen to consider a tool that could exclude a trading partner from the EU single market over unfair practices.
China’s Commerce Ministry warned Europe would face consequences if it adopted the proposed measure.
German businesses face pressure from Chinese competition, while China has fallen from Germany’s second-largest export market to its ninth, according to data for the first half of 2026.
- Who
- Germany, France and the European Union are considering tougher trade measures; China opposes them.
- What
- Merz and Macron asked the European Commission to consider a tool to cut a trading partner off from the EU single market over unfair practices.
- When
- They sent the letter last week, during crucial EU-China trade talks in Beijing.
- Where
- The proposed measure concerns access to the EU single market; the trade talks took place in Beijing.
- Why
- German leaders and businesses are increasingly concerned about Chinese competition and its effects on German industries and exports.
Germany and its supporters
China
Trade measures
Germany and its supporters
Germany’s leaders are seeking a tool to restrict single-market access if unfair practices continue.
China
China’s Commerce Ministry warned Europe would “suffer the consequences” if it adopted the proposed plan.
China fell from Germany’s second-largest export market to its ninth, according to data for the first half of 2026.
German car exports to China fell by 66%, according to Rhodium Group.
VDMA foreign trade chief Oliver Richtberg called for a harder line, saying companies were no longer willing to accept unfair measures.
Merz and Macron wrote to von der Leyen seeking a new trade measure, as EU-China trade talks took place in Beijing.
- Proposed measure
- Could cut a trading partner off from the EU single market
- German exports to China
- Car exports fell 66% between 2022 and 2025
- Chinese-made car imports
- Rose 121% in Germany in the first seven months of the year
- Share of vehicle imports
- Chinese-made vehicles accounted for nearly 14% in Germany
- EU goods deficit with China
- Around €360 billion last year
What people are saying
have convinced Merz and his closest advisers that the benefits of action outweigh the costs of inaction.
We are currently being deindustrialized through unfair measures — and most companies are no longer willing to accept this
suffer the consequences
Sources
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