German Cabinet to discuss steps to counter unfair global competition

The German government will soon discuss measures to counter unfair trade practices by global competitors, Vice Chancellor and Finance Minister Lars Klingbeil said Wednesday.

Speaking at a news conference with Chancellor Friedrich Merz after a Cabinet meeting, Klingbeil said protecting Germany’s steel, automotive, chemical and pharmaceutical industries remained a key priority.

“I support free trade, and I advocate for Germany consistently pushing for a rules-based order. However, when we see others failing to play by the rules, we cannot afford to be naive,” he said.

Klingbeil said Cabinet members discussed the latest developments during their two-day retreat.

“We have held a very serious debate about where we need to improve in order to reposition ourselves economically, as well as how we face competition – and, above all, the unfair competition we are increasingly encountering,” he said.

“In this regard, we have agreed to discuss appropriate measures in the Cabinet soon,” Klingbeil added.

His remarks came after growing calls from German industry groups and politicians for tougher action against what they describe as unfair business practices, particularly by China.

They say Chinese companies benefit from heavy subsidies, currency policies that distort competition and politically driven export controls.

Some politicians have also urged the EU to swiftly impose import tariffs on Chinese hybrid cars.

Germany is expected to outline its position and proposed countermeasures for discussion at an EU leaders’ summit in mid-October.