China-Germany Tensions Rise Over Trade and Tech: Warnings and Measures Fly

Tensions between China and Germany have risen over trade and technology, with both sides issuing warnings and taking measures. China has tightened control over critical inputs and warned Germany against 'forcible de-risking', while Germany pushes for an 'Anti-Coercion Instrument' in the EU.

China's recent actions include implementing export licensing for key materials like gallium, germanium, and graphite grades. Premier Li Qiang, during his visit to Berlin in June 2023, cautioned German industrialists that 'failure to cooperate is the biggest risk'. Meanwhile, the EU-China summits in December 2023 and July 2025 managed to agree on climate cooperation despite economic strains.

Beijing has responded to Germany's China Strategy with a twin-track approach since 2023, reassuring Berlin while pushing back at the EU level. It has reframed de-risking as 'decoupling by another name' and warned against 'ideological prejudice'. In retaliation, China initiated an anti-dumping investigation into EU brandy and imposed duties for five years in July 2025. The European Commission, in turn, imposed anti-subsidy measures on Chinese electric vehicles in October 2024. The Greens in the EU have requested the implementation of the 'Anti-Coercion Instrument' in 2025, but specific details and parliamentary votes are still pending.

Both China and Germany are engaged in a complex dance of cooperation and pushback, with trade measures and warnings flying back and forth. While they continue to find common ground on issues like climate cooperation, economic tensions persist and drive retaliatory actions. The EU's institutional design, with Brussels holding exclusive competence over trade, adds another layer of complexity to these dynamics.