German small businesses warn against mandatory de-risking from China
German SMEs warn that enforced economic de-risking from China could carry severe side effects for mid-sized businesses.
German small and medium-sized enterprises (SMEs) face significant economic risks if European and national regulators enforce a sharp decoupling or de-risking from China, according to research from the Institute for Small and Medium-Sized Business Research (IfM).
Small businesses often spend considerable time and resources evaluating Chinese suppliers and commercial partners to build stable supply chains. Experts from the IfM argue that politically mandated restrictions or forced breakups of these established commercial ties could severely disrupt SME operations. The institute urges policymakers in Berlin and Brussels to evaluate future economic regulations through the lens of smaller companies rather than applying broad mandates designed primarily for multinational corporations.
Sources: FAZ.