# Germany's Industries Depend on China, Study Finds

> Germany's most promising industries rely on Chinese supply chains despite efforts to reduce dependence.
- Title: Germany's Industries Depend on China, Study Finds · EUobserver
- Summary: Germany's most promising industries rely on Chinese supply chains despite efforts to reduce dependence. A study shows Germany's key industries depend on…
- Keywords: germany, china, supply chains, zoe institute, industrial policy, derisking, clean tech, politics, world, Germany's, Industries, Depend
- Source: EUobserver — https://euobserver.com/241603/germanys-most-promising-industries-depend-on-china-despite-berlins-derisking-push-study-finds
- Published: 2026-10-08T04:33:00+00:00
- Read time: 1 min
- Topics: germany, china, supply chains, zoe institute, industrial policy, derisking, clean tech, politics, world
## 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.
## Key takeaway

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.