From EUobserver · · 1m 30s
Germany's Industries Depend on China, Study Finds
Germany's most promising industries rely on Chinese supply chains despite efforts to reduce dependence.
In brief
Germany's most promising industries rely on Chinese supply chains despite efforts to reduce dependence. A study shows Germany's key industries depend on China for components and buyers, creating a conflict with Berlin's push to reduce reliance on Chinese supply chains. Originally reported by EUobserver.
Study Reveals
A new study published on Thursday (8 October) ranks 62 German industries by future value, green tech links, and economic contribution.
Small Electrical Industries Excel
Small electrical industries, including battery producers and electric motor manufacturers, rank highly due to specialized know-how that protects high-wage economies.
China as Supplier and Buyer
China matters to these industries not only as a competitor but also as a supplier and buyer, according to the ZOE Institute study's co-author Marla Schiefeling.
Industrial Policy Challenge
Germany needs to scale these sectors while cutting dependence on China, but the fastest way to scale requires cheap Chinese components.
Structural Economic Decline
German manufacturing jobs fell 420,000 between 2019 and 2025, and exports to China dropped 29 percent from 2021 peaks to 2025 levels.
Carmakers' Green Potential
German carmakers like BMW, Mercedes, and Volkswagen have capabilities for batteries, wind turbines, and power grids, positioning them for electric mobility leadership.
EU Industrial Policy Debate
The EU's Industrial Accelerator Act aims to create 'Made in EU' preferences for strategic sectors, but may raise prices for German battery makers reliant on Chinese parts.
The bottom line
A study shows Germany's key industries depend on China for components and buyers, creating a conflict with Berlin's push to reduce reliance on Chinese supply chains.
