AI-generated summary
The EU accuses China of state subsidies and overcapacity that would make it more difficult for European companies to compete. Germany and France are calling for new protective instruments against unfair trading practices.
China has criticized Germany and France for calling for new European safeguards against unfair trade practices. "Protectionism cannot increase competitiveness," said a spokesman for the Ministry of Commerce in Beijing. Decoupling and cutting supply chains harmed others and did not benefit oneself.
Chancellor Friedrich Merz and French President Emmanuel Macron jointly spoke out in favor of new protective instruments. Systematic market-distorting practices endanger competition for European companies and lead to increasing dependencies, according to a letter to EU Commission President Ursula von der Leyen. Merz and Macron do not name a specific country, but the background is likely to be Chinese trade policy. The EU accuses China, among other things, of state subsidies and overcapacity that would make it more difficult for European companies to compete.
This article will continue to be updated.
AI outlook — possibilities, not facts
The EU Commission will decide on the demand for new protection instruments.
Likely · Within weeks
SpaceX plans to buy AI chips from Nvidia worth $40 billion, according to the Financial Times. To this end, ten billion dollars in bank loans and $30 billion in bonds are to be raised, led by the asset manager Apollo. Pimco is also involved in the discussions. Completion is expected in 2027.

On Wednesday, investors are hoping for new impetus from US interest rates. At the same time, developments on the bond markets continue to determine trading. The Dax closed Tuesday up 0.8 percent at 25,449 points, but was in the red before trading started. Investors await September Fed minutes, ECB speeches and German manufacturing data. In Asia, rising oil prices and geopolitical tensions weighed on markets, while US indices hit record highs. The US government is increasing a ten-year government bond by $39 billion.

The China shock has a double impact on the German economy: cheap imports are flooding markets and the Chinese market is becoming unattractive for European companies. The German car industry in particular is suffering, while VW, BMW, Mercedes, Audi and Porsche together recorded a 27 percent decline in sales in China.

The flood of cheap Chinese products in Europe and the simultaneous collapse of German companies' business in China are presenting companies with a fundamental economic turning point, as the Handelsblatt article shows.

Rising oil prices due to tensions between Saudi Arabia and Iran-backed Houthi rebels in Yemen and a storm in the Gulf of Mexico weighed on Asian stock markets on Wednesday. The Nikkei index fell 0.9 percent while Brent oil prices rose to $101.40 a barrel. Investors are waiting for minutes from the Fed's latest meeting for clues on future rate moves.

According to a media report, SpaceX wants to raise $40 billion to buy Nvidia AI chips. The financing will consist of $10 billion in bank loans and $30 billion in bonds, led by Apollo and with participation from Pimco. Completion is expected in 2027.