Study Shows German Economy Still Reliant on China Ahead of Scholz’s Trip

A study by the German Economic Institute revealed that the German economy remains heavily reliant on China for various products and raw materials, despite attempts to expand to other markets. While imports from China decreased by almost 20% between 2022 and 2023, Germany still depends on China for more than half of its imports in product groups like chemicals, computers, and solar cells. The country’s dependence has even grown in certain categories, such as pharmaceuticals and rare earths like scandium and yttrium.

Although 73 product groups were removed from the list of goods for which Germany heavily relies on China, a similar number of new categories were added. This resulted in a slight decrease in the total number of heavily dependent goods, from 213 to 200. The study highlighted the lack of clear structural de-risking in terms of reducing imports from China.

The study’s release coincided with Chancellor Olaf Scholz’s upcoming trip to China, where he will address concerns about fair access to the Chinese market and Europe’s fears of being flooded with Chinese excess capacity. This visit marks Scholz’s first trip to China since Germany developed a China strategy last year to reduce its economic exposure to China, following events like Russia’s invasion of Ukraine in 2022 that underscored Europe’s reliance on Russian gas shipments.

Accompanying Scholz on this trip are chief executives from companies like Siemens and Mercedes, as well as cabinet ministers. This underlines the continued significance of China to Germany despite the country’s efforts to diversify its economic relationships.

By Samantha Robertson

As a seasoned content writer at newsderf.com, my passion for storytelling and creativity shines through in every article I craft. With a keen eye for detail and a knack for research, I thrive on translating complex topics into engaging reads that resonate with our diverse audience. My goal is to inform, entertain, and inspire readers through thought-provoking content that leaves a lasting impact. Join me on this exciting journey as we explore the world of news together.

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