Despite efforts to diversify, the German economy remains highly dependent on China for various products and raw materials. The study conducted by the German Economic Institute revealed that although overall imports from China decreased by almost 20% from 2022 to 2023, Germany’s reliance on China for more than half of imports in certain product groups like chemicals, computers, and solar cells has remained relatively unchanged. In fact, for products like pharmaceuticals and rare earths such as scandium and yttrium, Germany’s dependence on China has even increased.
The study noted that there has not been a significant structural reduction in imports from China. With 73 product groups being removed from the list of high dependence while a similar number was added in their place, this resulted in only a slight decrease in the total number of product groups for which Germany heavily relies on China, dropping from 213 to 200. This information comes as Chancellor Olaf Scholz prepares for a trip to China, where companies are advocating for fairer access to the Chinese market and Europe is concerned about excessive Chinese capacity flooding its market.
Scholz’s visit to China is significant as it is his first since Berlin’s development of a China strategy last year, which aimed at reducing economic exposure to China but lacked specific measures or binding targets. With concerns mounting over reliance on countries like China and Russia, particularly after Russia’s invasion of Ukraine in 2022, Germany is looking to minimize risks associated with economic partnerships. The trip will include chief executives from companies like Siemens and Mercedes, highlighting the ongoing importance of Beijing in global economic relations.
