German Business Leaders Sound Alarm on China's Global Trade Practices

German business leaders are raising red flags over China’s global business conduct, which they claim is destabilizing global markets. This warning comes as Chancellor Friedrich Merz prepares for talks in Beijing focused on potential cooperation.

According to a position paper from the Asia-Pacific Committee of German Business, seen by Reuters, China is accused of encouraging overcapacity, granting massive subsidies, and implementing distortive foreign-exchange and political export controls. These practices are seen as intensifying competition and posing a threat to Europe's prosperity and security.

Whilst acknowledging China as an essential partner in business innovation, the business group stresses the need for Europe to develop a unified and robust strategy against what it calls China’s unfair trade tactics. Ahead of his visit, Merz has expressed a desire to redefine relations, focusing on cooperation with China in light of trade barriers from the US.