Cheerleaders to critics: German machinery makers call for EU action on China

Germany’s iconic machine makers used to be among the loudest cheerleaders for ever-closer economic ties between China and Europe.

Now, as exports dwindle and facing “increasingly strong [Chinese] competitors” beefed up by “unfair state subsidies”, the industry is demanding that Brussels put in place trade barriers to protect it.

A new position paper published on Thursday by the Mechanical Engineering Industry Association (VDMA), representing medium-sized manufacturers that help constitute Germany’s famed Mittelstand group of businesses, marks a dramatic reversal for an industry that until recently lauded the Sino-German economic miracle.

“The EU should impose countervailing duties on imports from third countries if they violate EU anti-dumping or anti-subsidy rules. China is a particular focus here with its aggressive export policy,” read the VDMA’s paper.

The industry group – whose 3,600 members make everything from power transmission systems and machine tools to semiconductor machines and precision tools – made clear that it was ready to compete with Chinese rivals on a level playing field. However, it was also unequivocal that it feels those conditions do not exist and that it wants governments to intervene.

“Chinese companies are heavily subsidised by the government. And they supply products to Europe that sometimes disregard our technical regulations. China is not playing fair, and politicians must respond to this,” said Bertram Kawlath, VDMA’s president.

  

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