9.2 Necessary measures and open issues

China is also creating dependencies in global competition. The targeted international dissemination of state-led national technology standards from China as part of the Belt and Road Initiative is arousing grave concerns. German industry sees a risk of a fragmentation of technical market access conditions and intensification of global separation trends.

Given this background, a strong European Standardisation System (ESS) has a key part to play in the strategic and technological sovereignty of Europe. The ESS is internationally competitive and highly esteemed by industry. The integration of the ESS in the international standardisation system is imperative for the successful and effective implementation of European initiatives such as the Global Gateway and the green and digital transformation. The international standardisation system is largely consistent and broadly accepted which makes it a central building brick for the strong positioning of European industry on the global market.

European standardisation has a special role in alleviating the legislator and encouraging practical, lean and innovation-friendly regulation. The regulatory framework for European product legislation, the New Legislative Framework (NLF), is a globally unique success model in this respect and must be protected from politically motivated bureaucratic overregulation. Instead of weakening the very roots of its economic success, the EU must make the NLF fit for the requirements of the future and apply it consistently. Problems could well arise if the regulatory framework is only applied reticently and new legal harmonisation regulations are not drawn up in accordance with the NLF.

The world is becoming more interconnected, more digital and more sustainable. Efforts towards a green, digital and circular economy defines the technology areas of the future that are relevant to standardisation. Technologies in the fields of transport, energy, artificial intelligence, cybersecurity, batteries and the circular economy will take on central importance. In this context, the increasing significance of and heightened focus on standardisation must be reflected on the political level. The successful bottom-up approach practiced in Europe must be combined with the top-down approach in an effective way, and coordination in setting priorities in standardisation improved.

9.2 Necessary measures and open issues

In order to counter a fragmentation of the technical market access conditions at the international level and establish a green and digital economy according to European standards across the world, industry and policymakers must coordinate joint objectives and establish fundamental success principles of standardisation in their work. Standardisation is one component of the overall economic system and must be structured as such: standardisation must be led by the economy and borne by the economy.

The economic participants ensure that the right content is subject to standardisation at the

right time. Standardisation makes an indispensable contribution to the dissemination of technological knowledge and continued local economic growth.

Advance international harmonisation

We encourage the European Commission to work towards the inclusion of international standards in regulations relating to market access at the international level. Multilateral and bilateral talks towards this end should be stepped up with the aim of reaching agreement on binding regulations. International standards must become a fixed component of European trade strategies and agreements. This is a prerequisite if we are to consolidate our leadership role in standardisation. International standards strengthen rule-based trade and increase the resilience of western-oriented states against systemic competitors. This needs to be given particular consideration in the drawing up and ratification of free trade and association agreements.

Expand engagement in international standardisation

To prevent the fragmentation of international standardisation through an increased implementation of Chinese standards in substantial swathes of global trade, efforts need to be geared towards active involvement in developing international standards and their adoption. European stakeholders must maintain and expand their involvement in international standardisation bodies and recognise the strategic importance of standards as a competitive factor and tool of global trade. The WTO should be utilised to a larger extent to underline the advantages of adopting international standards and working on their development.

Set incentives and encourage standardisation projects

Standardisation requires a solid financing basis. State financing should always be directed at specific standardisation projects and not paid out on a blanket basis. Where relevance to the market has been proven, project-specific funding from the state can increase the clout of standardisation at the international level and the global competitiveness of European companies. Funding schemes should focus on those fields identified as priority fields and work packages with practical relevance and exclusively used for expertise.

Bilateral and multilateral cooperation

In view of the interdependence of European value chains and the risk of fragmentation of technical market access conditions, it is important to focus efforts on supporting and expanding bilateral and multilateral cooperation to develop and adopt international standards. Technical regulations that are recognised throughout Europe or internationally are necessary for the success of the Global Gateway and other European projects. Emerging requirements for standardisation need to be identified and addressed at an early stage and cooperation in priority fields expanded both on an international and on a European level. National standalone solutions should be avoided. The Trade and Technology Council (TTC) is currently performing excellent work and can be used as a template for the groundwork of other free trade and association agreements. Economic policy relations with likeminded countries should be expanded to this end.

Strengthen European internal market and take on global leadership role

The European single market is an indispensable, stable and harmonised economic area for German and European industry in which companies can sell their products in accordance with uniform regulations. As part of the European single market, the European Standardisation System (ESS) needs to be integrated into the international body of standards as far as possible. Future legal harmonisation regulations should be laid out in strict accordance with the principles of the New Legislative Framework33 .

33 BDI (2022). Position. Common Specifications | A horizontal approach for the development and use of common specifications must be in accordance with the NLF. 10 June. Berlin.