German officials are discreetly cataloguing weaknesses in China's economy to prepare for a potential trade conflict between the European Union and Beijing, examining trade flows, supply chains, and corporate-level data, according to people familiar with the matter.
Preliminary findings identify German industrial firms Trumpf and Carl Zeiss as potential pressure points in China's supply chain. The assessment is expected to extend to semiconductor equipment makers Siltronic, Aixtron, and SUSS MicroTec, with the contingency plans forming part of a broader set of 34 confidential measures under Germany's National Security Council.
Chancellor Friedrich Merz has recently hardened Berlin's stance toward Beijing. The review follows EU leaders' instruction last month to the European Commission to develop new trade defence instruments to address the bloc's trade deficit with China. A Trumpf spokesperson denied the company supplies strategically significant products to China. Beijing imposed an export ban on Nexperia chips last year, underscoring the escalating tit-for-tat dynamic.