Siemens Chief Busch Warns EU on AI Regulation Pace, August 31

Siemens CEO Roland Busch told the Welt am Sonntag on August 31 that the EU is moving too slowly on artificial intelligence regulation, allowing technology to outpace policy. He also rejected the narrative that China’s industrial success stems mainly from state subsidies, instead crediting strong engineering teams and rapid adaptation. Busch cautioned against broad tariffs that mask Europe’s own competitive gaps.

Busch’s warning on AI regulation lag

Roland Busch said the EU’s regulatory process moves too slowly to keep pace with AI development. He noted that AI models can evolve six to eight times while an AI Act or Data Act takes two years to pass. By the time rules take effect, the underlying technology has often shifted direction. “We always lag behind,” Busch told the newspaper, according to reporting from August 31.

China’s strength comes from talent, not just subsidies

Busch rejected the common German industry claim that China’s trade advantage rests on state support. Instead, he emphasized that China has “very capable competitors” with “strong engineers and committed teams” who develop innovative products and rapidly adopt new technologies including AI. He told the Welt am Sonntag that Europe must acknowledge this new competitive landscape rather than blame unfair practices alone.

Tariffs risk hiding Europe’s own weaknesses

Busch warned against broad EU tariffs on Chinese goods, saying targeted measures might be justified but widespread protectionism could mask Europe’s lack of competitiveness. “One must be extremely careful not to protect a lack of competitiveness, because that takes revenge,” he said. Germany’s trade deficit with China grew by 22 billion euros to 89.3 billion euros in 2025, adding pressure on policymakers to act.

Siemens benefits from AI data center demand

Siemens has profited from strong demand linked to AI data centers, particularly in the United States. Busch said in early August that momentum from this segment should continue into 2027 and beyond. He does not believe an AI bubble is forming. The company’s stock rose 0.75% to 289.10 euros on August 31, with Meyka grading SIE.DE a B+ and forecasting 337.56 euros within three years.

Final Thoughts

Busch’s comments reflect a rare willingness among German industrial leaders to acknowledge China’s genuine competitive strength and question Europe’s regulatory approach. For investors, Siemens’ exposure to AI infrastructure and its cautious stance on protectionism position it to weather trade tensions better than peers betting on tariff shields.

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