Germany has long resisted tougher action against China, fearing retaliation. But rising pressure on key industries has pushed Berlin to seek stronger EU trade-defense powers to protect its industrial base.

Germany’s cautious approach toward Beijing is cracking. For years, Berlin blocked a harder line on what the European Union describes as China’s unfair trade practices.

In the last few months, that caution — a fear of Chinese retaliation that could hurt German exporters — has given way to a willingness to escalate.

Last week, Chancellor Friedrich Merz and French President Emmanuel Macron wrote jointly to European Commission President Ursula von der Leyen seeking a new tool to cut a trading partner off from the EU’s single market if unfair practices continue.