German Export Decline to China Spurs Economic Diversification Push
Germany's exports to China have plummeted by 25% since 2019, while imports from China continue to surge. This widening trade deficit—projected to reach €88 billion this year—has triggered alarm among businesses and policymakers alike.
Chancellor Friedrich Merz has signaled a strategic shift, pledging protections for German steelmakers against Chinese competition. New policies include stricter bans on Chinese components in critical infrastructure and preferential 'buy-European' procurement rules.
The National Security Council's November meeting highlighted growing concerns over China's dominance in key mineral markets. Meanwhile, German manufacturers face unprecedented pressure as Chinese firms leverage subsidies, currency advantages, and scaled production to undercut traditional industries.
