BDI calls for greater independence from China and a more self-confident stance against US protectionism

Germany as an industrial location is under pressure: supply chains are dependent on China, US measures are causing uncertainty. Now the industry association BDI is formulating new priorities - and criticizing previous concessions to the US government.

In a policy paper, German industry is urging itself to become more independent from China. According to the BDI industry association, better distribution of risks, known as de-risking, must be pursued more consistently. What exactly follows from this remains unclear.

The automotive industry, for example, is heavily dependent on China as a huge sales market. The People's Republic also has a dominant position in numerous intermediate products and raw materials, which makes German companies vulnerable. But de-risking takes time; supply chains cannot be broadened overnight, BDI General Manager Tanja Gönner told journalists. One approach would be further cooperation to import raw materials.

Overall, Germany should expand partnerships with other regions of the world. These should be aligned more clearly with economic and security policy interests. Without mentioning China by name, it is said that the European Union needs a suitable set of tools to be able to take action against low-cost competition or excessive state subsidies from trading partners. Defensive measures would have to be deployed quickly to compensate for distortions of competition. However, new instruments always have to be carefully considered.

According to the BDI, a self-confident demeanor is also needed towards the USA, which under President Donald Trump has forced a trade agreement on the EU that is unfavorable for Europe. "In the event of protectionist US measures, European countermeasures must be examined without unnecessarily straining the strategic relationship." According to experts, the strong concessions to Trump are due to the fact that the EU is too dependent on the USA in terms of security policy. New threats to the security situation would also have to lead to structural adjustments in companies.

The expenses for upgrading the Bundeswehr and modernizing the infrastructure, which go hand in hand with high debts, would have to come from the normal budget again in the medium term. "The massive borrowing is only justified if it is accompanied by a more efficient use of public resources through reforms of state structures, the implementation of necessary structural reforms and the prioritization of expenditure."