Germany to lobby EU on China policy, weighs tougher trade measures on Beijing

Berlin is crafting a sweeping economic-security plan to shield strategic industries from China, targeting cabinet sign-off on Oct. 14 before seeking EU backing.
Among the ideas on the table are fresh levies targeting hybrid electric cars, mandatory joint ventures, more stringent checks on both inbound and outbound investment, and a tighter export-control regime.
Beijing has also criticized the EU’s proposed Industrial Accelerator Act, which would favor European-made products in public procurement and support schemes would create investment barriers and discriminate against Chinese companies.
The European move comes amid a growing trade deficits with China.
Some of the potential European measures discussed now mirror Chinese trade and investment policies, e.g., mandatory joint ventures (non-Chinese companies must not found a subsidiary in China as they need a Chinese partner that holds the majority of the venture), and exclusion from public procurement over security issues.

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