• German Vice Chancellor Lars Klingbeil announces a tougher stance towards China, prioritizing European production in strategically important sectors and pushing back against unfair trade practices.
• Chancellor Friedrich Merz emphasizes that Germany is prepared to face any fair competition from China, but will defend itself against unfair trade practices with the support of the European Union.
• The German government is committed to addressing issues such as overcapacity, subsidies, and artificially suppressed currencies in trade with China, highlighting the importance of collective action with the EU.

German Vice Chancellor Lars Klingbeil has announced a tougher stance towards China, saying on Thursday that Germany would prioritize European production in strategically important sectors and push back against what he described as unfair trade practices.

"I called for a more robust course towards China weeks ago, and we are now implementing it. In strategically important areas, such as infrastructure or defence, we are relying on European production - local content," Klingbeil, who also serves as German finance minister, said in Berlin.

Germany wanted open trade, Klingbeil said, but it "will not accept that others do not play by the rules and destroy jobs and business models here with unfair means."

'We are aware of the dependencies'

Chancellor Friedrich Merz said his government was not concerned about a Chinese counter-reaction, for example a blockade of rare earths for the German economy.

"We are aware of the dependencies, but we are also aware of the mutual dependencies. The European Union, with 450 million consumers, is the largest sales market for very many countries in the world," Merz said.

Appeal to the European Union as well

Germany would face any fair competition, Merz said. But if unfair trade practices were used - such as overcapacity, subsidies or artificially suppressed currencies - then Germany must defend itself against that.

Tackling such practices was not Germany's task alone, he added. "That is a task we are also addressing together with the European Union," Merz said.