Ahead of Scholz trip, study shows German economy still dependent on China
"A clear structural de-risking – in the sense of a continuing trend towards further significant declines in imports – is therefore not yet apparent," the study said. Some 73 product groups were removed from the list of goods for which Germany relies heavily on China but a similar number was added in their place, meaning the total number fell only slightly to 200 from 213.
The German economy is still highly dependent on China for a number of products and raw materials despite efforts to diversify to other markets, a study by the German Economic Institute showed on Tuesday. While overall imports from China dropped by nearly a fifth between 2022 and 2023, the share of product groups for which Germany relies on China for more than half of its imports has barely changed, including chemicals, computers and solar cells.
For some categories, such as pharmaceuticals and rare earths such as scandium and yttrium, Germany's dependence has increased. "A clear structural de-risking – in the sense of a continuing trend towards further significant declines in imports – is therefore not yet apparent," the study said.
Some 73 product groups were removed from the list of goods for which Germany relies heavily on China but a similar number was added in their place, meaning the total number fell only slightly to 200 from 213. The study was published ahead of Chancellor Olaf Scholz's trip to China this week, with companies pressing for what they characterise as fairer access to the Chinese market and Europe worried about Chinese excess capacity flooding its market.
The trip is Scholz's first to China since Berlin drew up a China strategy last year that urged a "de-risking" to reduce economic exposure to the world's second-largest economy, but was vague on specific measures or binding targets. Germany has become increasingly wary of tethering itself to a country it has described as both a partner and a systemic rival, in particular after Russia's invasion of Ukraine in 2022 laid bare Europe's reliance on Russian gas shipments.
Scholz will take with him chief executives from the likes of Siemens and Mercedes, as well as cabinet ministers, underscoring Beijing's continued importance.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
ALSO READ
Online videos show Chinese runner being gifted win in Beijing half marathon
Sydney mass stabbing: Chinese woman killed in Bondi Junction Westfield
BRIEF-Chinese Commercial Banks Grant 520 Bln Yuan Of Loans To Property Projects Under White List- Securities Times
Chinese city Zhengzhou tells state-owned company to buy second-hand homes to reduce new housing inventories
US Defence Secretary holds talks with Chinese counterpart, first since 2022