German government wants companies to 'de-risk' from China, but business is reluctant

A worker at Munk Group in Günzburg, Germany, punches holes into a part that will be used to construct a ladder. After years of using Chinese suppliers, Munk Group recently decided to cut off all business with China. Germany's government has cautioned all German businesses to be careful about not depending too heavily on China, a strategy known as "de-risking." (Rob Schmitz/NPR)

GÜNZBURG, Germany — The glowing finger at the end of a robotic arm blazes across a ribbon of aluminum, welding holes in one of 2,000 ladder parts that will be constructed at an assembly line run by the Munk Group in southern Germany.

Factories like this one dot the landscape in rural Bavaria, home to hundreds of Mittelstand companies: private, family-owned enterprises that make up the backbone of Europe's largest economy. Ferdinand Munk's family has built ladders here for 120 years, long enough to understand who's worth doing business with.