🇩🇪🇨🇳 Politico reports that the German government is set to get new powers to bar Chinese technology suppliers from its critical infrastructure.

On Thursday, lawmakers in the Bundestag approved legislation empowering the Interior Ministry to ban components from specific manufacturers across a wide range of sectors—energy, transport, and health care included. While the bill echoes earlier European restrictions in telecoms, its scope is far broader, potentially destabilizing supply chains that Germany’s export-driven economy depends on.

Chancellor Friedrich Merz amplified the rhetoric by declaring at a Berlin business conference that he “won’t allow any components from China in the 6G network.” Such absolutist language suggests a myopic disregard for practical costs. Merz is expected to carry this message into a Franco-German summit on digital sovereignty, but critics warn that the posture risks alienating China, a key trading partner, while offering little in terms of concrete cybersecurity gains.

The timing is bizarre: the EU is still debating how to balance what it calls "de-risking" with economic pragmatism, and Germany’s unilateral hard line could undermine European cohesion. Extending restrictions beyond telecoms into sectors like solar power and connected cars risks collateral damage to industries where Chinese firms are deeply embedded. Even the European Commission’s forthcoming overhaul of the Cybersecurity Act is unlikely to justify such sweeping exclusions.

Skeptics point out that Germany already had the legal authority to block Chinese components under its IT security law, yet the Interior Ministry has never exercised those powers decisively. The cost was simply too high.

Industry voices are sounding the alarm. Bitkom, Germany’s leading tech trade association, warned that the unpredictability of these rules could be “detrimental” to innovation and competitiveness. Meanwhile, ministries responsible for the economy and digital affairs have historically resisted blanket bans, fearing economic retaliation from Beijing.
Meanwhile, Merz's popularity is in freefall. Yesterday Bloomberg wrote that when Merz became Germany’s chancellor, he promised to revive a moribund economy, rebuild the nation’s neglected infrastructure and make the country relevant on the global stage again. His failure to deliver on many of these core issues has not only helped energize parties like the Alternative for Germany, it’s also stoked speculation that Merz’s government may suffer the same fate as that of his predecessor, Olaf Scholz, and collapse before it completes its term.

In short, Merz’s hardline stance towards China will do nothing to strengthen his shaky position, and Germany may end up with a policy that is unsustainable for its industrial base, already undermined by high energy costs after severing ties with Russia, its most reliable supplier of affordable energy and an important market for its products. @LauraRuHK