Germany's industry chief urges shift in economic ties with China amid supply risks
Tanja Gönner, head of the Federation of German Industries (BDI), has called for a major shift in Germany's economic ties with China. Speaking recently, she warned that Europe must cut its reliance on Chinese supplies while still engaging with the country. Her comments come as concerns grow over China's control of key raw materials and export policies.
Gönner described China as a complex partner—both a competitor and a systemic rival, yet still a crucial market. She highlighted the country's role as a centre for innovation, even as German firms invest elsewhere in Asia. But she stressed that Europe's economic security now depends on reducing vulnerabilities, particularly in raw materials like rare earths and permanent magnets, which are vital for high-tech and military applications.
She pushed for a 'de-risking' approach, urging Germany and the EU to act together in defending their strategic interests. Transparency and reliability in China's export controls were key demands, alongside open discussions on disputes and respect for existing agreements. For businesses operating in China, she backed a 'local for local' principle, ensuring investments serve both German and Chinese markets fairly.
Gönner made it clear that while China remains important, Europe can no longer ignore the risks of over-dependence. Without specific figures on German imports, she pointed to broader concerns about China's dominance in critical supply chains.
The BDI chief's remarks signal a push for a more balanced relationship with China. Germany now faces the challenge of securing its own economic interests while keeping trade and innovation links intact. How this strategy unfolds will shape Europe's industrial future in the years ahead.
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