German auto industry is considering taking a tougher line towards China

Berlin, Düsseldorf. In view of growing competition from China, the German auto industry is apparently considering a tougher trade policy line towards Beijing. According to its own statements, the Association of the Automotive Industry (VDA) is reviewing its previous position. “With a view to China and the current challenges, we are monitoring developments and analyzing the extent to which adjustments to our positions are necessary or not based on figures, data, facts and corresponding impact assessments,” a VDA spokeswoman told Handelsblatt. It goes on to say: The association is committed to “free and fair trade”. But it is also “up to China to approach Europe with constructive proposals and to consistently and quickly stop behavior that distorts competition.” This indicates a change of course in the German auto industry. For years, the sector was among the most vocal opponents of additional trade barriers against China. The manufacturers warned of an escalation and countermeasures from Beijing. Instead of new tariffs, the VDA primarily called for better location conditions in Europe. These demands still apply, but the tone towards China is becoming harsher.