Schumann Urges Germany to Prioritize Economic Reform
The official argues that structural changes, not protectionism, are the key to maintaining Germany's industrial competitiveness.
Updated on Oct. 15, 2026 in Business Strategy
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Michael Schumann says Germany and the European Union should focus on fixing internal economic weaknesses rather than adopting protectionist policies toward China. The remarks come as European economies struggle with high energy costs and infrastructure challenges.
Why it matters
Schumann warns that Chinese competition has highlighted existing structural issues in Europe, suggesting that open trade is vital to protecting the industrial base. Strengthening local economies is presented as the primary defense for securing future growth.
German companies invested 7 billion euros, approximately 7.8 billion U.S. dollars, into China in 2025. Currently, 61 percent of surveyed German firms intend to further increase their investment in the region over the coming two years.
The players
Michael Schumann
He is an influential voice regarding the economic relationship between Germany and China.
The details
German firms are increasingly adopting an 'in China, for China' strategy by localizing supply chains and expanding research and development capabilities. This approach allows companies to leverage China's innovation environment to adapt products to new market developments.
Timeline
German companies invested 7 billion euros in China in 2025.
Michael Schumann discussed China-EU economic ties on October 15, 2026.
Market Landscape
The shift toward localizing operations reflects a broader trend among multinationals to mitigate global trade friction by operating directly within major markets. This strategy positions German firms to maintain access to China's innovation ecosystem while navigating tightening international trade dynamics.
For European consumers and clients, these structural shifts aim to lower long-term costs by stabilizing the industrial base against energy price volatility. However, business customers may see continued reliance on localized Chinese supply chains for specific research and manufacturing outputs.
The takeaway
Maintaining competitiveness requires focusing on internal structural reforms like bureaucracy reduction rather than relying on trade barriers. Firms that successfully localize their supply chains are better positioned to utilize foreign innovation environments.
Further reading
Learn more about evolving global commercial approaches in the Business Strategy section.
Source note: This article includes information reported by News.
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