Industrial policy blueprint and political demands

The Federation of German Industries (BDI) presented a 42-page policy blueprint in Berlin, establishing growth and international competitiveness as the central priorities for German economic policy. Representing 38 member associations and approximately 100,000 individual enterprises, the lobby urged the federal government to replace internal political debates with an autumn of action dedicated to concrete legislative work. BDI Managing Director Tanja Gönner pointed out that conventional location policy can no longer guarantee industrial resilience, climate goals, or security without a coherent foreign trade framework for relations with China, the United States, and emerging partner markets. Gönner also addressed recent state election gains by the Alternative for Germany in Saxony-Anhalt and Mecklenburg-Western Pomerania, stating that the party does not represent business interests and pursues policies harmful to German enterprises.

“Growth and competitiveness must return to the center.”

Supply chain diversification and China policy

Reaching a consensus on China required two rounds of internal negotiations among the 38 industry associations due to differing sectoral dependencies. The automotive sector, machinery producers, chemical manufacturers, and steelmakers remain heavily dependent on China as an export market while relying on Chinese suppliers for raw materials and intermediate goods. Gönner emphasized that de-risking requires time, noting that supply networks cannot be reorganized immediately without expanding raw material import agreements and boosting domestic European processing, mining, and recycling capacity. In parallel, the German Automobile Industry Association (VDA) addressed market imbalances, with President Hildegard Mueller endorsing World Trade Organization mechanisms and targeted protective tariffs provided they are developed in close coordination with affected companies.

“Isolationism and protectionist measures always carry the risk of escalating trade disputes.”

Regional pressure for European trade defense

State governments in Germany are pushing the federal government and the European Commission to take faster action against subsidized competition. On 25 September, North Rhine-Westphalia and Baden-Württemberg submitted a joint initiative in the Bundesrat demanding accelerated anti-dumping and anti-subsidy proceedings. The motion calls for provisional countervailing duties to be implemented earlier and applied to additional sectors, specifically hybrid and plug-in hybrid vehicles. North Rhine-Westphalia Economy Minister Mona Neubaur warned that state subsidies, an undervalued currency, and state-funded excess production in China threaten employment across core German sectors. The initiative follows comments from European Commission President Ursula von der Leyen, who described the influx of subsidized goods as a China shock risking the deindustrialization of European manufacturing centers.

“We do not want a trade war, but we cannot watch as fair competitive conditions are undermined.”

Domestic fiscal reforms and American trade relations

The BDI also addressed trade tensions with Washington, arguing that the European Union accepted disadvantageous agreements under US President Donald Trump because of European security reliance on the United States. The lobby urged European leaders to examine retaliatory measures against protectionist US actions without destabilizing strategic relations. On domestic governance, the 38 associations demanded strict adherence to the constitutional debt brake and insisted that rising expenditures for Bundeswehr rearmament and infrastructure modernization eventually return to the standard federal budget. The paper further called for tax relief, reduced energy and labor costs, expanded computing power for artificial intelligence rollout, and greater flexibility within European climate architecture.