Chancellor Friedrich Merz and coalition partners convened to discuss a tougher trade stance toward China after warnings that Germany’s industrial base is weakening. A harder line could lead to new tariffs, investment restrictions, or supply‑chain reshuffling, impacting German exporters and importers alike. Chancellor Friedrich Merz,SPD, Greens and FDP coalition partners,German industry representatives,Chinese government Further deliberations on specific measures such as tariffs or investment screenings,EU‑China trade talks scheduled to yield results by October,Industry lobbying for subsidies or compensatory measures The coalition’s meeting reflects mounting concern that Chinese competition is undermining Germany’s manufacturing sector. Officials are considering tighter export controls and investment screening to protect domestic industry. Such a shift could alter EU‑China trade dynamics and affect supply chains across Europe.
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