Study Reveals German Economy's China Dependency Ahead of Scholz Visit

10 Apr, 2024

Study Reveals German Economy's China Dependency Ahead of Scholz Visit

The German economy remains significantly reliant on China for various products and raw materials, despite attempts to broaden its market base, as revealed by a study from the German Economic Institute on Tuesday (Apr 9). Although overall imports from China decreased by almost a fifth between 2022 and 2023, Germany's dependence on China for more than half of its imports in crucial product groups like chemicals, computers, and solar cells has remained largely unchanged.

In certain sectors such as pharmaceuticals and rare earths like scandium and yttrium, Germany's reliance on China has even intensified. The study suggests that a substantial reduction in imports, indicative of structural de-risking, has not yet materialized. Although 73 product groups were removed from the list of heavily reliant goods, an equivalent number was added, resulting in a marginal decrease in the total number from 213 to 200. This analysis precedes Chancellor Olaf Scholz's visit to China, during which companies are advocating for fairer access to the Chinese market, while Europe is concerned about potential flooding of its market due to Chinese excess capacity.