• Burmese
Saturday, July 12, 2025
No Result
View All Result
NEWSLETTER
The Irrawaddy
25 °c
Yangon
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
No Result
View All Result
The Irrawaddy
No Result
View All Result
Home News Asia

German Firms Urged to Cut Dependence on China

Reuters by Reuters
November 1, 2018
in Asia
Reading Time: 3 mins read
0 0
A A
Chinese Prime Minister Li Keqiang and German Chancellor Angela Merkel attend a presentation for autonomous driving next to a Mercedes Benz S-Class VRU research car at Tempelhof airport in Berlin, Germany, on July 10. / Reuters

Chinese Prime Minister Li Keqiang and German Chancellor Angela Merkel attend a presentation for autonomous driving next to a Mercedes Benz S-Class VRU research car at Tempelhof airport in Berlin, Germany, on July 10. / Reuters

5.2k
VIEWS
Share on FacebookShare on Twitter

BERLIN — A new strategy paper from Germany’s influential BDI industry federation calls on firms to reduce their dependence on the Chinese market, according to a draft seen by Reuters, in a sign of rising concern over Beijing’s state-driven economic model.

The 25-page China position paper from the Federation of German Industries (BDI), which is due to be published in January, argues that a long-promised opening of the Chinese market is unlikely to take place and voices concern about rising Communist party control over society and the economy.

Entitled “Partner and Systemic Competitor — How to cope with China’s state-driven economic model,” the paper makes clear that German firms cannot afford to turn their backs on China.

RelatedPosts

No Content Available

But, in an unusual step, it urges them to reassess their presence there, while offering numerous recommendations for the German government and European Union.

The BDI is Germany’s main business lobby group and although its proposals do not always translate directly into policy, they carry significant weight.

“Despite the attractiveness of the Chinese market, it will be increasingly important for companies to closely examine the risks of their engagement in China and to minimize their dependence by diversifying supply chains, production sites and sales markets,” reads the draft, which is being vetted by BDI members and could change before publication.

A spokesman for the BDI later confirmed that the group was working on a China paper but said it was still at an early stage.

Bilateral trade between Germany and China hit a record 188 billion euros ($213 billion) last year. And big German firms, notably carmakers like Volkswagen, Daimler and BMW, depend heavily on the fast-growing Chinese market.

But while their presence there was once seen as a strength, it is now unsettling German politicians and industry as Beijing asserts control over the economy under President Xi Jinping.

Skepticism is growing despite recent steps by China to open up its economy, including allowing Germany’s BASF to invest in a major chemical site and BMW to take control of its main joint venture in China, a first for a foreign carmaker.

Another worry is the escalating trade conflict between the United States and China, which risks putting Germany — and Europe — in the awkward position of having to choose between its top two economic partners.

Range of problems

The paper cites a range of problems for German firms operating in China, from forced technology transfer and failures to protect intellectual property to arbitrary customs decisions and unequal access to licenses and financing.

It calls for closer coordination on China strategy within the German government and between the EU and like-minded partners, including the United States.

It also argues for a new EU instrument to prevent state-subsidized takeovers, including requiring Chinese firms to present accounts based on internationally agreed standards when acquiring European firms so their ownership structures and financing can be vetted.

The BDI calls on the EU to develop its own ambitious industrial strategy for 2030, an echo of Beijing’s “Made in China 2025” plan, which prioritizes development of key industry sectors, from robotics and aerospace to clean-energy cars.

It argues for a bigger EU budget — including a doubling of R&D spending — to support investments in infrastructure, education and innovation.

“We are facing a systemic competition between our open markets approach and China’s state-driven economic model,” the paper reads. “We need a broad discussion across politics, society and industry about this challenge.”

Responding to the story, Volker Treier, foreign trade chief at the German chambers of commerce and industry, warned against putting forward any strategy that “pushes China into a corner.”

The BDI makes clear in the paper that German industry has no interest in “fencing in” China. But it also supports a firm response to China’s attempts to reshape the liberal global order.

It describes the Belt and Road Initiative (BRI), Xi’s ambitious plan to connect China to Europe, Africa and beyond via transport links and trade deals, as an attempt by Beijing to build geopolitical influence and shape third markets according to its own interests.

To counter this influence, the BDI calls for a “diplomatic offensive” from Berlin and Brussels towards countries in Eastern Europe, Central Asia, Southeast Asia and Africa.

Your Thoughts …
Tags: German Firms
Reuters

Reuters

...

Similar Picks:

No Content Available
Load More
Next Post
Office workers climb down a bridge in Mumbai's central financial district, India, October 29, 2018.  / Reuters

India's War on Red Tape is Working, Says World Bank

The sister of Za Za Lin watches as Za Za Lin gets her hair cut at Insein hair market in Yangon on June 18. / Reuters

'Shines With the Color of Pearls': Myanmar's Trade in Human Hair Booms

No Result
View All Result

Recommended

‘Reforms Are Not Optional’: Prominent Activist Urges NUG to Act Before It’s Too Late

‘Reforms Are Not Optional’: Prominent Activist Urges NUG to Act Before It’s Too Late

2 days ago
1k
Trump’s Tariffs to Hit Myanmar’s Garment Manufacturers Hard

Trump’s Tariffs to Hit Myanmar’s Garment Manufacturers Hard

3 days ago
999

Most Read

  • Chinese Investment Reshapes Myanmar’s N. Shan as MNDAA Consolidates Power

    Chinese Investment Reshapes Myanmar’s N. Shan as MNDAA Consolidates Power

    shares
    Share 0 Tweet 0
  • Myanmar Junta Deploying Conscripts in Major Push to Reclaim Lost Territory

    shares
    Share 0 Tweet 0
  • Myanmar Junta Chief Thanks Trump for Shutting Down VOA and RFA

    shares
    Share 0 Tweet 0
  • KIA Denies Rumor Chief Under House Arrest in China

    shares
    Share 0 Tweet 0
  • Junta Bombing of Resistance-Held Areas in Mandalay, Karenni Kills Seven Civilians

    shares
    Share 0 Tweet 0

Newsletter

Get The Irrawaddy’s latest news, analyses and opinion pieces on Myanmar in your inbox.

Subscribe here for daily updates.

Contents

  • News
  • Politics
  • War Against the Junta
  • Myanmar’s Crisis & the World
  • Conflicts In Numbers
  • Junta Crony
  • Ethnic Issues
  • Asia
  • World
  • Business
  • Economy
  • Election 2020
  • Elections in History
  • Cartoons
  • Features
  • Opinion
  • Editorial
  • Commentary
  • Guest Column
  • Analysis
  • Letters
  • In Person
  • Interview
  • Profile
  • Dateline
  • Specials
  • Myanmar Diary
  • Women & Gender
  • Places in History
  • On This Day
  • From the Archive
  • Myanmar & COVID-19
  • Intelligence
  • Myanmar-China Watch
  • Lifestyle
  • Travel
  • Food
  • Fashion & Design
  • Videos
  • Photos
  • Photo Essay
  • Donation

About The Irrawaddy

Founded in 1993 by a group of Myanmar journalists living in exile in Thailand, The Irrawaddy is a leading source of reliable news, information, and analysis on Burma/Myanmar and the Southeast Asian region. From its inception, The Irrawaddy has been an independent news media group, unaffiliated with any political party, organization or government. We believe that media must be free and independent and we strive to preserve press freedom.

  • Copyright
  • Code of Ethics
  • Privacy Policy
  • Team
  • About Us
  • Careers
  • Contact
  • Burmese

© 2023 Irrawaddy Publishing Group. All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Business
    • Economy
    • Business Roundup
  • Books
  • Donation

© 2023 Irrawaddy Publishing Group. All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.