We accept competition. We need a competitive location. We demand fair competition!" With this message, VDMA President Bertram Kawlath traveled to Brussels this week for talks with EU representatives to emphasize the demands of the machinery and plant engineering sector. "We respect the achievements of our Chinese competitors. But since the distortions of competition from China and Chinese companies are now comprehensively documented, effective responses from the EU are needed to ensure fair competitive conditions," demands Kawlath. "We must not allow ourselves to be at the mercy of subsidies, dumping, and currency manipulation."
In June 2025, the VDMA presented a position paper on dealing with the competitor China: "Competition on Equal Terms: An Appeal to Politics in Dealing with China." In light of the increasingly unfair trading practices, the association has revised the document and now presented it: VDMA Position Paper China - For Competitiveness and Fair Competition." It sets out demands to the federal government and the European Union, which are intended to strengthen Europe's competitiveness and enforce fair competition in the internal market.
Countervailing duties at the level of product groups and reversal of the burden of proof
New in therevised position paper is the demand for countervailing duties at the level of product groups, such as construction machinery, when there are corresponding indications of unfair competitive practices. "The European Union must act more quickly and effectively against distortions of competition such as subsidies, dumping, and currency manipulation. Currently, the EU Commission is examining distortions of competition for each product individually. It would take decades to offset all unfair competitive advantages. We do not have that much time," explains Oliver Richtberg, head of VDMA Foreign Trade. In addition, the European Union should consider a reversal of the burden of proof for countervailing duties, demands the VDMA. "The distortions of competition from China and Chinese companies are now comprehensively documented. Therefore, affected Chinese companies should have to prove that they are not benefiting from these unfair advantages when there are sufficient indications," says Richtberg. However, the EU should not introduce import quotas with high additional duties on further imports ("safeguards"), emphasizes Richtberg. "Such measures would equally affect third countries, regardless of whether they apply unfair competitive practices or not," he explains. Furthermore, the VDMA demands that the revenues from trade protection measures be fully channeled into technology-neutral innovation funding and, if necessary, used to support companies affected by Chinese countermeasures.
Significantly strengthen market monitoring
A second, essential measure to ensure fair competitive conditions in the internal market, according to the VDMA, lies in significantly more intensive market monitoring. "Chinese companies repeatedly export machines to Europe that do not comply with EU regulations. Violations of regulations should therefore be consistently penalized. Manufacturers from third countries who violate the rules should be required to undergo pre-certification by a third party," demands the head of VDMA Foreign Trade.
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