German firms warn of competition from China

Economy | Politics 1/10/2019, 9:20 AM
German firms warn of competition from China

In a strategic document, the Federation of German Industries eV called on measures which would make the market economy at home and in the European Union more "resistant" to challenges coming from the most populous nation. In excerpts which emerged before publication, set for Thursday, it highlights "systemic competition" from China's state-controlled system and flags its rising strength, for instance in artificial intelligence.

The government in Beijing isn't liberalizing the economy despite claiming otherwise, said the organization, better known as BDI, and claimed markets and prices are distorted by state aid. The result is global overcapacity, such as in steel, the paper reads and adds speculation the same would occur in areas like robotics and batteries. German businesses said the EU's legal framework must be adapted to confront dumping and subsidies as well as state-financed acquisitions of technology companies.

China isn't as open for European capital as is the case in the other direction, BDI complained. It underscored the need to invest in infrastructure, upgrade education and support research and development, for which it proposed to double the budget.

Breaking the News / IT



Chart for: EUR/CNY Reference Rate