BDI President Kempf: Strengthen the European Union to better compete with China

Berlin (ots) -

- The organisation formulates 54 demands addressed to the German
Federal Government and the European Commission
- Making the market economy more resilient
- Calls for new security controls on foreign investments

The President of the Federation of German Industries (BDI), Dieter
Kempf, has called on the German Federal Government and the European
Commission to strengthen the European Union (EU) in the face of
competition with China. The BDI has outlined 54 demands addressed to
Berlin and Brussels for the New Year in order to better meet the
growing challenges posed by the state-dominated Chinese economy. The
demands are summarized in a new policy paper which the BDI published
on 10 January in Berlin, titled "Partner and systemic competitor -
How do we deal with China's state-controlled economy?"

Contrary to what was previously expected, China will not develop
into a market economy or embrace liberalism in the foreseeable
future. "The People's Republic is establishing its own political,
economic and social model," Kempf said. The country has entered into
systemic competition with liberal market economies such as Germany.
This development must be assessed realistically to develop a
response.

Kempf made it clear that China remains the driving force of the
global economy and an important sales and procurement market for
German industry. As such, German industry wants to continue to use
the opportunities of economic exchange with China. "However, no one
should simply ignore the challenges China poses to the EU and
Germany."

In the policy paper, the BDI calls for a strengthened economic
policy framework for the European single market. This should ensure
that companies from non-market economy countries are bound to the
liberal market economy regulations of the EU if they want to be
active in Europe. It is more important than ever for the EU to not
only point out the significance and binding force of its order and
values internally, but also to more forcefully advocate them
externally.

"It is essential that the German government once again becomes the
standard bearer for a stronger EU," demanded the BDI President. At
the same time, Germany and the EU must invest significantly more in
research, development, education, infrastructure and future
technologies. "The EU needs an ambitious industrial policy for its
leading companies that focusses on innovation, intelligent
regulation, social partnership, infrastructure and free trade.

The Federation of German Industries proposes sharpening EU state
aid legislation and anti-subsidy instruments. Europe must take
effective action against companies that do not produce in the EU and
receive state subsidies. Therefore, the BDI advocates introducing a
new type of subsidy control for foreign investments. This should help
control state-financed takeovers of European technology companies and
prevent them if necessary. High quality standards should become a
must in public procurement. Dumping prices offered by foreign
suppliers must be investigated for potential subsidies. The 54
demands should be a compass in the political debate.

"The German industry measures the Chinese government by its own
internationally announced obligations. It is in Beijing's own
interest to open up its domestic market further and to vigorously
implement long-announced economic reforms," explained Kempf. The
faster China creates competitive equality between Chinese and EU
companies on the world market through economic reforms and market
openings, the fewer new control instruments will need to be used.

The German-Chinese trade volume last reached 187 billion euros,
almost 30 per cent of the total trade between the EU and the People's
Republic (2017). China is Germany's most important trading partner
outside the EU. German exports to and imports from China amounted to
86 billion and 101 billion euros respectively.

According to the latest official figures, German direct investment
in China totalled 76 billion euros (2016). Approximately 5,200 German
companies with over one million employees were active in China. The
BDI estimates the stock of Chinese investments in Germany at the end
of 2017 to be 13 billion euros.

You can read the BDI policy paper on China here
http://ots.de/b7bVxl

The Federation of German Industries (BDI) is the umbrella
organization of German industry and industry-related services. It
speaks for 35 trade associations and more than 100,000 enterprises
with around 8 million employees in Germany and 3.5 million employees
in other countries. Membership is voluntary. 15 organizations in the
regional states represent the interests of industry at the regional
level.

Contact:
The Federation of German
Industries Member association of
BUSINESSEUROPE

Contact numbers
T: +49 (0)30 2028 1479
F: +49 (0)30 2028 2479

Website
www.bdi.eu

Email
Presse@bdi.eu

Original-Content von: BDI Bundesverband der Deutschen Industrie, übermittelt durch news aktuell