By The European Times | Created at 2026-09-08 08:36:44 | Updated at 2026-09-26 16:14:59
2 weeks ago
Germany likes to present itself as the guardian of European industry. Berlin speaks constantly about competitiveness, strategic autonomy, and the need to defend “Made in Europe.” But in practice, German leadership has helped create the very conditions allowing Chinese imports to undercut European producers.
This contradiction is becoming impossible to ignore. Germany’s old industrial model was built on making and exporting the high-value goods that powered global business: cars, machinery, factory equipment, aircraft, and other complex products. For decades, German companies could rely on engineering quality, export strength, and access to global markets.
That model is now under pressure from China. Beijing is no longer simply a customer for German goods. It is now a direct competitor in many of the same sectors. Chinese companies, supported by a powerful industrial policy and lower-cost production, are increasingly able to match or approach German quality while selling at far lower prices.
The response from German leadership has been too weak and too cautious. Instead of demanding a serious European strategy to defend domestic production, Berlin has often treated Chinese competition as something to manage, accommodate, or even partner with.
The result is a dangerous message to European industry: if you cannot beat China, bend to China.
That is already happening. German manufacturer Jungheinrich, long known for forklifts and warehouse vehicles, has partnered with Chinese manufacturer EP Equipment to produce an entry-level forklift that can compete on price. The product may not match higher-end German-made models, but it is cheaper and good enough for customers who do not need top-level performance.
This should be a warning. When German companies begin turning to Chinese production to survive price competition, it shows how far the industrial balance has shifted. Germany is no longer simply exporting to China. It is adapting to a world where Chinese firms increasingly set the price, scale, and competitive pressure.
The same pattern is visible in electric vehicles. German automakers once dominated Europe’s car market, but they are now struggling against Chinese competitors that move faster, produce more cheaply, and benefit from deeply integrated supply chains. Berlin’s hesitation to confront this directly weakens the entire EU response. Every delay tells Beijing that Europe’s largest economy can be pressured by fear of retaliation.
This failure matters beyond cars. Germany already learned this lesson with solar panels. It helped pioneer solar adoption, only to watch lower-cost Chinese products drive several German manufacturers out of the market. Today, Europe risks repeating that mistake across the next generation of strategic industries.
Tobacco and nicotine products show another version of the same problem. Regulated European and Western producers face growing restrictions, higher taxes, and political scrutiny. They employ workers, pay taxes, invest in legal supply chains, and operate under strict rules. Yet they are often treated as the main target of policy.
Recent data from Germany shows where this pressure leads. In the first half of 2026, authorities seized nearly 2.5 million illicit e-cigarettes, already 70% of the full 2025 total, while nicotine pouch seizures reached 179% of last year’s figure. As legal producers absorb rising taxes and restrictions, demand shifts to an untaxed, unregulated black market.
Meanwhile, illicit and non-compliant Chinese-made vape products continue to move through Europe through weak logistics channels and fragmented enforcement. These products are cheaper, harder to trace, and outside the standards expected of legal manufacturers. They undercut regulated companies while creating risks for consumers and public authorities.
Germany should be leading the push for an enforcement-first strategy. It should be demanding stronger border checks, tougher action against illegal online sales, and a regulatory approach that does not punish companies simply because they are visible and compliant. Instead, German leadership too often hides behind process, caution, and commercial anxiety.
That approach is not protecting Europe. It is helping China.
A serious industrial policy would start with a basic principle: do not burden regulated European producers while allowing lower-cost Chinese imports to gain market share. That principle should apply to cars, machinery, batteries, consumer goods, tobacco, and vapes alike.
Germany cannot keep claiming to defend European industry while enabling a system that weakens it. It cannot demand competitiveness while accepting rules that fall hardest on domestic producers. It cannot speak about strategic autonomy while allowing China to expand its grip on key markets.
Europe does not need more speeches from Berlin about industrial strength. It needs German leadership willing to defend the companies, workers, and supply chains that still make European industry worth protecting.
Germany says it wants a stronger Europe. But until Berlin stops accommodating Chinese competition while burdening domestic producers, it will remain part of the problem.
