German industry pushes Merz for tougher China policy

German companies are pressing Chancellor Friedrich Merz for stronger action against unfair Chinese competition. Manufacturers face mounting pressure from state-subsidized rivals as trade deficits widen.

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German Chancellor Friedrich Merz attends a press conference, during a meeting of like-minded EU member states for talks on the next Multiannual Financial Framework, at the Chancellery in Berlin, Germany, August 27, 2026. REUTERS/Maryam Majd

Germany's industrial sector is pushing Chancellor Friedrich Merz to adopt a firmer trade stance against China amid mounting pressure from subsidized Asian rivals. The growing assertiveness marks a departure from a long-held reluctance to back trade barriers due to fears of economic retaliation. Berlin's positioning will influence the European Union's broader trade policy ahead of high-level bloc talks scheduled for October.

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