German industry faces unprecedented competition from Chinese companies, according to a survey by the German Chambers of Commerce and Industry (DIHK). In a Thursday briefing in Berlin, DIHK foreign trade chief Volker Treier stated that Chinese firms no longer compete solely on price and volume but have become technologically advanced, innovative, and increasingly global in their operations.
A DIHK survey of 1,300 German businesses found two-thirds reporting intensified competitive pressure. The impact is most pronounced in industrial sectors, where 83% of companies feel the squeeze—exceeding the levels reported in trade or services. Among firms with operations in China, 88% cite growing competition, while even 38% of companies without direct China operations perceive heightened rivalry. Despite the challenges, nearly all affected businesses plan to remain active, with 60% prioritizing product innovation, 50% focusing on cost reductions, and 39% seeking new sales markets. Nearly a third of companies would consider deeper partnerships with Chinese counterparts.
German industry sees no self-correcting resolution to the issue. The survey indicates 67% of businesses support a unified EU stance toward China, while 60% advocate reducing strategic dependencies—particularly in raw materials. Additional demands include excluding Chinese firms from critical infrastructure projects (49%), tightening EU market access rules (36%), and implementing stricter trade protection measures (31%). Conversely, 25% of respondents favor reducing trade and investment barriers.
A notable 55% of firms endorse stronger EU measures against perceived distortions, even if such steps risk higher costs, bureaucracy, tariffs, or retaliatory actions. Only 37% oppose these measures. "This is not a call for a trade war," Treier emphasized. "Companies seek fair competition, not isolation." He urged consistent enforcement of existing EU instruments.
The issue dominated discussions at this week’s G20 finance ministers meeting in the U.S., where participants addressed non-market practices and trade imbalances. A summary noted the group’s intention to counter distortions arising from excessive exports that harm other economies. While China opposed several formulations, the remaining G20 members supported the U.S. stance, which has already imposed higher tariffs on Chinese goods. China’s global trade surplus reached nearly $1.2 trillion in 2025, a record high.
