Germany: Regulation of firms dependent on China

Germany proposes to require more reporting on firms that depend on China. Report says a reaction to dependence on Russia for energy.

“Germany’s foreign ministry plans to tighten the rules for companies deeply exposed to China, making them disclose more information and possibly conduct stress tests for geopolitical risks, a confidential draft document seen by Reuters said.”

Should the US do likewise?


Separate from our internal camps, our politicos are seeking ties to EU positions on industrialization and more. Meaning internet privacy laws etc. We are working to coordinate with the EU.

[quote=“pauleckler, post:1, topic:81173”]
Should the US do likewise?[/quote]

In some ways we do, at least. There is certain technology we don’t allow for export to China/Russia/etc. There is a limit as to how powerful the CPU can be that we allow for export, for example. We just recently added the GPU to that list (since GPUs are used so much for computation and not just games now).

Germany’s approach might work. We discovered tariffs didn’t (no surprise to me).

If materials from China were interrupted due to some major event which US businesses would survive and which would fail?

Germany sees this effect primarily from reduced volumes of natural gas from Russia. But many US businesses are dependent on China for manufacturing and in cases like rare earths and maybe battery grade lithium are dependent on materials from China.

Its a risk. Should it be monitored like the stress tests banks went through after the no doc loan disaster?