German finance minister calls for tougher stance from China amid pressure on steel industry
German Finance Minister and Vice Chancellor Lars Klingbeil called on Germany to take a tougher stance against China, accusing Beijing of distorting competition through subsidies, overcapacity and other trade practices that put pressure on key industries, including steel and automotive. Speaking at Bitterfeld-Wolfen, Klingbeil said that Germany can no longer rely solely on traditional principles of free trade, while China strengthens its competitive position. "They're not playing by the rules," said Klingbeil, one of the leaders of the Social Democrats and Germany's vice chancellor. "Excess production capacity, government subsidies, obligations to establish joint ventures – all this."
"We simply have to do more in this regard," he added.
These comments come amid growing concerns about the competitiveness of European industry. European politicians are increasingly saying that tougher trade protection measures and industry support mechanisms may be needed to counter competitive pressure from China. On June 11, EU leaders instructed the European Commission to prepare further measures aimed at eliminating the bloc's trade imbalance with China. On April 13, the European Steel Producers Association (Eurofer) welcomed the new EU steel trade measures, calling them an unprecedented response to record import levels and global overcapacity.
In line with the latest EU steel trade measures, which came into force on July 1, it reduced duty-free import quotas to 18.3 million tonnes and introduced a revised quota allocation system aimed at combating global overcapacity and unfair trade practices, as previously reported by Fastmarkets. According to Eurofer, imports of semi-finished and finished steel products to Europe in 2025 increased by 14% year-on-year to 40 million tons, while steel production in the EU decreased by 2.9% year-on-year to a record low of 125.8 million tons.
Klingbeil also pointed to the Chinese opportunity to produce cheaper, environmentally friendly steel at a time when European producers are facing rising decarbonization costs and weak demand.
,Growing support for European industrial preferences, ,
,Klingbeil's remarks reflect a broader shift in the debate about the competitiveness of European industry, especially in sectors such as steel and automotive.
Over the past five years, imports from China have almost doubled.