The industry feels unprepared to compete against heavily subsidized Chinese rivals, urging the government to take action to level the playing field.

The position paper specifically calls for the EU to impose countervailing duties on imports that violate anti-dumping or anti-subsidy rules, focusing on Chinese products.

Concerns were raised about Chinese products bearing CE marking that do not meet EU safety standards, which poses risks to consumer safety.

The VDMA demands mandatory pre-certification for manufacturers with repeated violations and suggests banning exports to Europe for those failing to comply with regulations.

To enhance competitiveness, the VDMA advocates for tax reductions and bureaucratic streamlining for German companies.

In the position paper, the VDMA calls for a 'level playing field' and urges the German government and the EU to take decisive action against these unfair practices.

To maintain technological leadership, the VDMA emphasizes the need for increased innovation funding, noting that current government support for research and development is insufficient.

Kawlath also stressed the importance of government support for strategically significant technologies to avoid new dependencies and enhance energy security.

On June 12, 2025, the Mechanical Engineering Industry Association (VDMA) released a position paper demanding trade barriers to protect German manufacturers from unfair competition, particularly from China.

VDMA President Bertram Kawlath highlighted that German machinery manufacturers are now seeking state assistance and EU intervention to counteract unfair practices from Chinese competitors.

Historically supportive of free trade, the VDMA's shift towards advocating for state intervention reflects increasing pressure from its members as Chinese firms capture a growing share of the global market, currently around 35%.

Kawlath pointed out that Chinese companies often benefit from subsidies and advantages that distort fair competition, which is a major concern for German manufacturers.