German industry body calls on EU for action and new trade agreements to counter China
The German Engineering Industry Association, VDMA, is calling on the EU to reduce dependence on the Chinese market and improve access to new markets, expressing concern about the growing problems related to China's industrial policy.
As China continues to exploit competition-distorting advantages and government subsidies, European companies find themselves at a crossroads, demanding immediate action from policymakers.
"Our companies are ready to compete with Chinese companies. We want to succeed in the global market by relying on our own efforts," said Kavlat, President of VDMA. "We're doing our homework. But that's not enough. We urge politicians to strengthen their positions and ensure fair competition in the domestic market right now."
VDMA President Bertram Kavlat highlighted the urgency of the situation during a recent press conference at which the association presented its position paper entitled "Leveling the playing field: a call for fair competition." with China." The document highlights the urgent need to create a united European front to counter unfair practices that undermine the competitiveness of local industry.
"Chinese companies are playing a dishonest game," Kavlat said. "They enjoy significant government support and often ignore our technical regulations, which puts our business at a disadvantage."
According to the VDMA, European companies strive to compete on fair terms, but need more support from their governments. This includes the imposition of countervailing duties on imports from countries that violate EU anti-dumping or anti-subsidy rules, and increased market surveillance to punish non-compliance with EU legislation.
To avoid dependence on China, the development of strategically important technologies must be supported by industrial policy. This could be achieved through non-price criteria for public tenders, exclusion criteria for market access and criteria for local content, as well as free trade agreements.: The EU urgently needs to conclude more free trade agreements, especially with MERCOSUR and India, to improve access to new markets and reduce dependence on the Chinese market.
"We need new free trade agreements, for example, with India. The agreement with the South American Mercosur countries has been concluded for a long time.
Now it should finally come into force," said Bertrand Cavlat, president of the VDMA.
The Association also called on European companies to promote standardization activities in order to avoid competitive advantages.,