Germany’s Economy Ministry laid out a broad industrial strategy that seeks a more hands-on approach in backing the country’s export champions against Chinese and U.S. competition.
The approach doesn’t come naturally to German politics, where leaders have in the past relied on the market and independent business decisions, in contrast with France’s more interventionist policy.
Germany’s more active approach is a response to U.S. President Donald Trump’s America First doctrine and China’s 2025 strategy, which set out a detailed strategy to catch up with global rivals in high-end technology. The German government has become increasingly concerned over the vulnerability of its engineering prowess amid a shift to digital technologies.
Efforts by the German Finance Ministry to explore a merger between the Deutsche Bank AG and Commerzbank AG and a disputed rail merger between Siemens AG in Germany and France’s Alstom SA underscore stepped up efforts to back national or European champions that can hold up as the global economy shifts.
A wake-up call for Germany in rethinking its industry strategy came after the takeover of robot maker Kuka AG by China’s Midea Group Co. in 2016. That led Merkel’s government to review its tools for shielding technology companies and securing German competitiveness. Merkel’s cabinet implemented its new powers in August 2018 by thwarting a Chinese bid for tiny machine-tool manufacturer Leifeld Metal Spinning AG.
