Zero Day Difference | Still blaming China? This German report tells the truth

Recently, many European media and think tanks have focused on discussing the impact of the so-called "China shock" on Europe, and the EU has even shown signs of brewing a new round of trade restrictions against China. However, there are also rational voices within Europe - the Economic Advisory Committee of the German Federal Ministry of Economic Affairs recently released a trade policy assessment report, which is based on detailed economic data and industry research and forms a strong refutation of the current panic talk about China within Europe.

The report interprets the so-called "China shock" as the automobile, machinery manufacturing and other industries have entered a "new stage of competition", and clearly proposes to defend the principle of open markets: economic security should not be equated with insularity, and countries should focus on their own comparative advantages. Regarding the obvious decline of German industry since 2018, the report pointedly pointed out that the main crux lies in location factors and cost burden.

The report was evaluated by Germany's Der Spiegel as putting forward a "different view" of the prevailing rhetoric and "putting on the brakes" within Europe. Just like letting others take medicine before treating a disease, many Europeans are accustomed to blaming China for the weakness of their own manufacturing industry and trade deficit, and often regard tariff barriers as a prescription to solve industrial problems. In comparison, this report tells the truth: the relocation of manufacturing industries, the slowdown in innovation iterations, high industrial costs, and the lagging pace of transformation are the crux of Europe's own decline in competitiveness. The report warns that the EU's anti-dumping and countervailing investigations against Chinese electric vehicles and other products must not slide into trade protectionism. In the long run, trade protectionism will eventually harm the export-oriented economy.

This voice of reason is not alone. Siemens CEO Bo Leren publicly opposed the EU's imposition of comprehensive tariffs on China; Slovak Prime Minister Fizo bluntly stated when meeting with European Council President Costa that competitiveness does not rely on increasing tariffs and building barriers, let alone treating China as an enemy; Spanish Prime Minister Sanchez recently attended the United Nations General Assembly in New York and stated that Europe needs to cooperate with China to deal with common challenges and manage differences. The EU should strive to reach an agreement through negotiations rather than being dragged into destructive disputes. From think tanks to the business community, from member states’ governments to the market level, voices opposing building walls and advocating cooperation are continuing to accumulate.

In the final analysis, the fundamental solution to the pressure on the European economy lies in self-reform rather than erecting external barriers. In the face of the increasing competitiveness of China's electromechanical and new energy products, it only creates anxiety and panic and "supports" local industries. In fact, it is drinking poison to quench thirst and overdraw the future. Even those Europeans who emphasize the "China impact" have mentioned that building a trade wall with tariffs will only cover up their own reform shortcomings, raise the production costs of local companies, and suppress innovation vitality. In the end, Europe will foot the bill.

China-EU economic and trade has long been deeply symbiotic. The total economic output of both sides exceeds one-third of the world. The bilateral trade volume has increased from US$2.4 billion in the early days of diplomatic relations to US$828.1 billion in 2025, and the two-way investment stock exceeds US$280 billion. In addition to the deeply integrated industrial chain, the two sides still have broad room for cooperation in new fields such as artificial intelligence, carbon emission reduction, and climate governance.

To improve competitiveness, the missed lessons must eventually be made up, and more importantly, Europe must establish a correct understanding of China. Instead of wasting efforts to build defenses and containment, it is better to carry out extensive innovative cooperation, and the cake of common interests between China and Europe can be made even bigger.