Aside from the threats posed by the US Inflation Reduction Act, it is important to recognize the potentially much broader threat posed by China’s industrial policy counterpart, „Made in China 2025.“ China has been Germany’s biggest trading partner for eight years and also plays a significant role as an economic partner. China has increasingly competed with German companies in photovoltaics and electromobility by pursuing an aggressive industrial policy. Now, China is not only striving for technological progress but also wants to establish a dedicated ecosystem for small and medium-sized German enterprises (SMEs) in its own country.