German exporters are more dependent on Chinese business than ever before: For the first time, Germany’s quarterly exports to China surpassed quarterly exports to the United States and other countries, as China recovered from the COVID-19 crisis more quickly.
In response to a query from Reuters, the German Federal Statistical Office stated that from April to June, Germany’s total exports to China were close to 23 billion euros (1 euro is about 8.09 yuan-note on this website). In contrast, Germany’s exports to the United States during the same period were only 20 billion euros, and the United States has been Germany’s largest exporter in recent years.
Anton Berner, the president-elect of the German Wholesale and Foreign Trade Association, warned: “If the Americans wield the big stick, then our prospects will be bleak.”
According to reports, the United States has never been cautious in “defending” its own interests. The threat of sanctions by the United States on the second line of the North Stream Natural Gas Pipeline or on companies that do business with Iran has made Germany feel this.
Max Zenlein, chief economist of the German Mercator Center for China Studies, said: “The politicization of the global supply chain will force China to bring the value chain back home and reduce its dependence on foreign countries. This may have an impact on German exports. .”
The report pointed out that in the long run, China’s economy may become stronger, so it will be more important as a market.