BERLIN, Feb 20 (Reuters) - German business bosses warned on Friday of what they called destabilising and unfair global business practices by China, ahead of a visit to Beijing by Chancellor Friedrich
German Industry Lobby Alleges Unfair Chinese Trade Practices, Urges EU Unity
German Lobby Flags China Trade Risks
BERLIN, Feb 20 (Reuters) - German business bosses warned on Friday of what they called destabilising and unfair global business practices by China, ahead of a visit to Beijing by Chancellor Friedrich Merz in which he is expected to focus on cooperation opportunities.
Allegations: Overcapacity and Subsidies
In a position paper seen by Reuters, the powerful lobby group Asia-Pacific Committee of German Business accused Beijing of driving overcapacity, massive subsidies, distortive foreign-exchange policies and politically motivated export controls.
"Chinese competition, systemic risks, dependencies and distortions of competition have intensified significantly and have become a key challenge for prosperity and security in Europe," the paper said.
Potential for Escalating Trade Conflict
More trade conflicts with Europe were looming if China continues its increasingly assertive conduct in global trade, it said.
Call for a Unified EU Response
While stressing China's role as a partner in business and innovation, the association called on Europe to unify and prepare a "robust" response.
Beijing Denies Unfair Practices
The Chinese government has repeatedly rejected allegations of unfair trade policies.
'FUTURE COOPERATION'
Merz’s Agenda in Beijing
The business group's warning contrasts with Merz's more conciliatory messaging recently. He said ahead of his visit his goal was to talk "about future cooperation between Europe and Germany on this side and China on that side".
Balancing U.S. Trade Barriers
He has been seeking to redefine relations with China to balance out trade barriers erected by the United States.
Risk of Global Price Wars
The lobby group in particular warned that weak domestic demand and an industrial output capacity inflated by Chinese government measures were leading to ruinous global price wars.
Reporting and Editing Credits
(Reporting by Andreas Rinke, Writing by Ludwig Burger, Editing by Linda Pasquini and Jan Harvey)
