German media: China’s economy puts Germany in big trouble
27.01.2024
“German Editorial Network” is worried that the Chinese automobile industry, which has promoted the transformation of electric vehicles decades ago, will soon be overwhelmed by the established German automobile companies. “Le Monde” warned that as China’s economy declines, the German economy, which has enjoyed the “dividends of China’s rise” for decades, will also face difficult times.
(Deutsche Welle Chinese website) owns a number of German regional newspapers“German Editorial Network”Under the title “German car companies face challenges, and they don’t come from Musk,” the commentary pointed out that German car manufacturers have recently accused Musk of engaging in a price war with Tesla electric cars.Chinese-made electric cars are making big inroads into the European market. The author warns that German manufacturers must accelerate the transformation of electric vehicles.
The article pointed out that China established an electrified automobile industry strategy at the national level as early as 20 years ago. “The EU has now launched unsubstantiated dumping accusations against Chinese cars. Such an approach cannot protect the local industry in the long term.” Sooner or later, German manufacturers will have to face the reality of foreign competitors seizing space. Moreover, Chinese cars are indeed good, because when the Germans were still sliding into the diesel exhaust scandal, the Chinese had already bet on electric vehicles and battery technology.”
“As forWill Tesla electric cars give up the price war?, in fact, it is not particularly important. The key still lies in whether established German manufacturers can produce electric models that can compete with Chinese competitors. In fact, just a few years ago, the German automobile industry was still ridiculing Musk’s Tesla, but now it is terrified of him. In view of this, German manufacturers have little chance of winning when facing competitors from the Far East. “
The German Bundesbank in Frankfurt predicts a massive recession in China’s economy
Published in BerlinLe MondeUnder the title “Why China’s Economic Slump Is Particularly Hitting Germany”, a commentary was published stating that the Bundesbank is now very worried that China’s economy may experience a sharp recession of 9% within two years. The author calls on the German political and business circles to prepare early to avoid being helpless.
“This sounds a little ridiculous: a week ago, Beijing just announced that last year’s economic growth was 5.2%; the Bundesbank is now predicting that China’s economy may plummet by 9% within two years. Is the Bundesbank quietly being predicted by doomsday? Has the family taken over?”
“In fact, this is not the case: on the one hand,Everyone understands that China’s official economic data is no longer reliable. On the other hand, China’s huge real estate bubble is bursting,This will have a huge impact for many years to come。”
“For an economy,Housing market collapse is a worst-case scenario. Japan’s real estate bubble burst in the late 1980s and has yet to fully recover. The collapse of the U.S. real estate market in 2008 almost caused a complete collapse of the financial system. Only years of zero interest rate policy and huge government capital injections stabilized the situation. “
“Even if China’s economic recession is not as severe as predicted by the Bundesbank, we must realize thatChina’s economy will experience sluggish growth for many years to come. China’s era of rapid economic growth is finally over. As the country that has benefited the most from China’s rise, Germany will bear the brunt of the impact. “
“For decades,German companies sell everything China needs for its rise, which boosted German economic growth. German companies have made huge profits, and government taxes have also increased. Now, it’s all over. German companies must prepare for this, opening up new sales markets and perhaps changing their business models. German politicians must also prepare for years of economic stagnation and no tax growth. “
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2024-01-27 15:15:33
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