China has continuously gained market shares in the EU import market since 2000. At the same time, Germany’s share in EU imports has declined since 2005. This divergence is particularly relevant for sophisticated manufacturing products in which Germany is specialized.
Competition from China in the EU market for Germany’s manufacturing sector
Institut der deutschen Wirtschaft (IW)
China has continuously gained market shares in the EU import market since 2000. At the same time, Germany’s share in EU imports has declined since 2005. This divergence is particularly relevant for sophisticated manufacturing products in which Germany is specialized.
The diverging trends can be found for all depicted 2-digit-sectors. Moreover, China’s gains and Germany’s losses in the EU market accelerated between 2020 and 2022 in many respects – which would be in line with China plans to upgrade its production structure, e.g. in the course of the strategy ‘Made in China 2025’. This development raises questions about the competitive distortions emanating from China’s state capitalism and about appropriate trade policy responses.
Competition from China in the EU market for Germany’s manufacturing sector
Institut der deutschen Wirtschaft (IW)
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