German industry has demanded a harder line against China. The market economy must be made more “resilient”, – stated in a policy paper of the Federal Association of German industry (BDI), the German press Agency quotes. “Between our model of a liberal, open and social market economy, and China’s state-dominated economy to a system of competition.”
China is not developing, contrary to earlier expectations in sight to a market economy and liberalism, said BDI President Dieter Kempf. The country is distorted due to government intervention in markets and prices. The result of worldwide Overcapacity, such as in steel. In the future, you can expect to also, for example, in robotics or battery cells.
So that Europe and Germany in comparison with the Chinese state capitalism more competitive, proposes to the Association, and to raise EU state aid law and the anti-subsidy instruments. Europe must effectively against commercial practices that are not in the EU produce and state subsidies.
Although foreign investments were also from China, in principle, welcome. There should be a new type of subsidy control is introduced, the state-funded Acquisitions of European technology companies to examine and, if necessary, to prevent. In public procurement, high standards of quality should be a Must, dumping prices of foreign suppliers should be able to be lit on subsidies.
BDI requires Opening of the Chinese market
The BDI also demands that the Chinese market for foreign investors, more should open up. “While Chinese companies enjoy a relatively free access to the EU internal market, this does not apply Vice versa to the same extent for foreign companies in China,” says the paper. The faster China can do with economic reforms and market opening, equality of Competition between Chinese and EU companies on the world market, the less new instruments of control would have to be used.
China is the main trading partner for Germany outside the EU. The country has been trying for years to take on the one hand, via increasing company purchases foreign advanced technology and to win on the other hand, investment in European infrastructure, political influence – for example, on the project of the new silk road. Up to 2049, for 100. Birthday of the people’s Republic, wants to be China’s technological world.
The Federal government had recently with a view to China for protection against espionage and intellectual property barriers to foreign investors increased. The Cabinet is lowered for sensitive areas the threshold at which a share acquisition can check.