10.02.2023
Germany is buying more and more goods from China, but German exports to China are growing slowly. The German Institute for Economic Research (IW) believes that this is a dangerous development trend. “Once there is a military conflict in the Taiwan Strait, the German economy will be vulnerable to blackmail.”
(Deutsche Welle Chinese website)China is Germany’s most important trading partnerbut according to the latest research made by the German Institute for Economic Research (IW), the German economy is at an unprecedented height against Chinarely. Germany’s trade deficit with China is getting bigger and bigger.
According to the latest data released by the German Federal Statistical Office, in 2022, Germany will import a total of 191.9 billion euros in goods from China, an increase of nearly one-third over 2021. Germany mainly buys electronic products, textiles, machinery and chemical products in China. Germany’s exports to China, on the other hand, only increased by 3.1%, with an export value of 107 billion euros. Germany has a trade deficit with China of 84 billion euros. The trade deficit more than doubled compared to the previous year.
Economic aspect |
12.01.2023
“Full speed in the wrong direction”
The German Institute for Economic Research issued a warning: Germany is increasing its dependence on China. Jürgen Matthes, an economist at the institute, said the available data should be alarming. He pointed out that Germany’s trade with China is “moving in the wrong direction at full speed”.
Import dependence on Chinese goods will be a geopolitical risk for Germany. Matters emphasized that once there is a military conflict in the Taiwan Strait, the German economy will be vulnerable to extortion, so Germany must find a way to liberate itself.
German Federal Finance Minister Lindner also said on Twitter on Friday (February 10) that the trade imbalance between China and Germany is a “dangerous development”. He pointed out that Russia is a warning example. “In order to avoid greater dependence on China, we must change our thinking as soon as possible and achieve more free trade with partner countries that share the same values.”
political pressure
The German Institute for Economic Research criticized Chinese companies for selling goods cheaply because they receive large government subsidies. At the same time, China is trying to make itself less dependent on Western imports and boost domestic production.
In addition, the Chinese government is exerting increasing political pressure on German subsidiaries in China to include Chinese companies in theirsupply chainmiddle.
Economic aspect |
08.06.2021
(German Federation, Reuters)
© 2023 Deutsche Welle Copyright Statement: All content in this article is protected by copyright law and may not be used without special authorization from Deutsche Welle. Any wrongdoing will result in recovery and be subject to criminal prosecution.
