Germany backs new EU measures against China’s trade practices

Germany, long the EU member most reluctant to pick fights with its largest trading partner, just picked a fight with its largest trading partner. Chancellor Friedrich Merz announced on September 15 that Germany will support new European Union measures targeting what he called China’s “unfair” trade practices. The list of grievances is long: heavy state subsidies, industrial overcapacity, aggressive pricing strategies, and maintaining an undervalued currency. The numbers behind the pivot Germany’s trade deficit with China hit €90 billion in 2025, a figure that has quadrupled since 2020. Germany went from running a surplus with China before the pandemic to watching imports balloon to €170.6 billion while exports limped along at €81.3 billion. German manufacturing has been absorbing the consequences in real time, with reports indicating the sector is losing roughly 10,000 jobs per month due to Chinese competition. A survey by the DIHK, Germany’s association of chambers of commerce, polled approximately 1,300 German firms and found that more than half support tougher EU action against China. The notable part: they back these measures even knowing they could face higher costs or retalia...