Germany looks for leverage in case of Trade war with China
Germany is quietly preparing for the possibility of a future trade conflict with China by identifying weaknesses in Beijing’s economy and supply chains. The effort reflects growing concerns over rising economic tensions between Europe and China.
According to reports, German officials are conducting an informal assessment of China's economic vulnerabilities by studying trade flows, supply chains, and company-level data. The goal is to understand where China still depends heavily on German and European technology, specialized industrial components, and manufacturing expertise that could become leverage if trade relations deteriorate.
One of the key findings reportedly focuses on German companies such as Trumpf SE and Carl Zeiss AG. These firms supply critical technologies used by Dutch company ASML Holding NV to manufacture advanced semiconductor equipment. Since China still relies on parts of this European technology chain, officials believe these dependencies could become strategic pressure points during a prolonged trade dispute.
The assessment comes as the European Union continues to grapple with its widening trade imbalance with China. European policymakers have increasingly expressed concerns about Chinese industrial overcapacity, while Beijing strongly rejects those accusations, arguing that its manufacturing sector remains competitive rather than excessively subsidized. The disagreement has fueled tensions between the two economic powers.
Despite the preparations, Germany has not announced any immediate plans to use these findings against China. Instead, the analysis is viewed as a contingency exercise designed to strengthen the country's negotiating position should trade relations worsen. As Europe reassesses the resilience of its supply chains and strategic industries, Germany appears determined to better understand both its own vulnerabilities and those of one of its largest trading partners.