Nagel urges deeper Europe-Asia ties and stronger competitiveness
Joachim Nagel, President of the Deutsche Bundesbank, called for deeper, rules-based economic ties between Europe and Asia in Bangkok on October 17, 2026. He urged diversification and resilience in relations with China alongside stronger European competitiveness.
Different partners, different trade paths
Nagel called for open, reciprocal cooperation governed by common rules.
Since 2019, European Union (EU) exports to China have remained broadly stable while imports have increased substantially.
Exports to South Korea, India and the Association of Southeast Asian Nations have grown strongly; trade with Japan expanded more moderately.
Imports generally grew faster than exports.
China remains a major market and supplier, but also an industrial competitor and source of critical import dependencies.
The EU has deepened rules-based ties with Japan, South Korea, Singapore and Vietnam.
Nagel welcomed the EU-India trade agreement reached in 2026 and agreements with Indonesia in 2025, citing Indonesia's role in diversification.
Semiconductors connect complementary capabilities
In Dresden's Silicon Saxony cluster, ESMC, whose partners include Taiwan's TSMC, will add semiconductor capacity with government support.
Infineon opened a site near Bangkok two weeks before the speech.
Airbus combines European technology with Indian engineering, suppliers and manufacturing.
Nagel said resilience or spillovers can justify targeted support.
Citing European Central Bank President Christine Lagarde, he presented Dutch lithography supplier ASML as indispensable to chip production and noted its longstanding cooperation with TSMC.
Openness starts at home
Nagel put European competitiveness at the center of the response.
He called for reliable, affordable renewable energy, computing capacity and data centers for artificial intelligence.
He also urged a Savings and Investments Union to expand financing and European venture capital so start-ups can scale up at home.