A DIW economist warned that Germany's technology‑openness stance could harm its industry amid rising Chinese pressure in EVs, batteries, and AI. The warning highlights a policy dilemma for Germany: balancing open tech access with protecting domestic manufacturers facing subsidized Chinese competition. Who is involved: DIW (Deutsches Institut für Wirtschaftsforschung) economist, German industry, Chinese competitors, policymakers.. Likely next: German policymakers may consider targeted industrial subsidies or selective technology restrictions to shield key sectors.. The DIW‑Institut für Wirtschaftsforschung cautioned that Germany’s stance of technological openness could worsen the strain on domestic manufacturers already facing strong Chinese competition in electric vehicles, batteries and artificial intelligence. The warning highlights a policy dilemma: balancing access to foreign technology with measures to shield vulnerable industries. It suggests that policymakers may need to consider targeted subsidies or selective restrictions to prevent further erosion of industrial capacity. Sectors affected: electric vehicle manufacturing battery production artificial intelligence hardware Historical parallels: EU approved expanded electricity cost relief for German industry (Handelsblatt, 2026-07-08) Japan announced a 15‑year plan to invest two trillion euros in its industrial base (Handelsblatt, 2026-06-25)
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