Germany braces for China-backed competition reshaping global industries

Germany’s economy faces headwinds from China’s state-supported industrial policy that backs rival sectors and cheap exports, threatening sectors like solar and overall growth. Berlin counters with a €500 billion infrastructure fund and tax cuts, but analysts say the China shock is a major drag on Germany’s malaise. The EU is weighing tougher, more symmetric trade measures against China and tariffs on certain Chinese goods as Brussels seeks to shield its market and restore competitive balance.