TF-images/contributor/Getty Images
Industryweek 35895 Joe Kaeser Ceo Siemens Tf Images Contributor Getty

Siemens CEO Urges Europe to Take Stronger Stance in Trade Battle

Sept. 9, 2019
CEO Joe Kaeser claimed that the ongoing conflict between the United States and China risks forcing export-oriented companies into a bad dilemma.

Siemens AG Chief Executive Officer Joe Kaeser urged the European Union to assert its voice in the trade conflict between the U.S. and China, saying the specter of a “decoupling” of political and economic systems would break with decades of integration and ultimately risk a global recession.

“Europe would be well advised to avoid this bilateral decoupling, but it can only achieve this when it is heard as a third force in the world, and that’s not the case at the moment,” Kaeser told journalists in Berlin. Part of the problem is that Germany and France, as the two biggest economies in the region, aren’t always aligned between industrial and agricultural interests, he said.

Kaeser, who recently returned from a trip to China with German Chancellor Angela Merkel, said there’s a sense that the world is reorganizing into new economic spheres, making it harder for export-oriented companies to do business and creating the risk of “having to decide between friend and foe.” The CEO said he’s concerned about the uprising in Hong Kong, a key base for Siemens with 1,800 employees and a halo effect for the entire region. At the same time, finding the right voice as a foreigner or corporate leader requires the right measure and tone, he said.

“If you choose to escalate then you need to be clear actions may follow, otherwise you’re not credible,” Kaeser said. “Only escalating without a plan is very difficult.”

There’s a good chance that Germany will drop below zero growth in coming months, Kaeser said, as the economy has already hovered close to that line recently. Any slowdown won’t be as severe as in 2008, he added.

In a global economic slowdown, countries with an export-driven market are more likely to feel a decline than those that are services-oriented, he said. The German government has certain tools at its disposal to weather a slowdown, such as shorter working hours. The country should also consider investing more in infrastructure like roads or airports, he said.

Popular Sponsored Recommendations

Successfully Managing Change Through Integrated Manufacturing Operations Management

June 7, 2022
How Med-Tech companies manage ongoing change will be the key to success.

What Does Agility Look Like for Today's Auto Industry?

Dec. 4, 2023
Without modern technologies, enterprises aren't able to fully analyze the risks and respond to ongoing supply chain issues and semiconductor shortages.

Closed-loop change management supports faster and better project execution

Feb. 8, 2023
Closed-loop change management can save your shipbuilding projects from getting derailed. Our eBook has all the details. Download it now to learn more.

Closed-loop change management supports faster and better project execution

Feb. 8, 2023
Closed-loop change management can save your shipbuilding projects from getting derailed. Our eBook has all the details. Download it now to learn more.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!