Germany Warned Against Overlooking China's Economic Impact on Industry
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A leading Brussels thinktank has warned Germany to cease its admiration for China's economic success, cautioning that it risks facing significant deindustrialization akin to the U.S. experience 25 years ago. The Centre for European Reform (CER) highlighted a dramatic increase in China's trade surplus with Germany, which has risen from $12 billion to $25 billion between 2024 and 2025, resulting in a staggering $94 billion trade imbalance. This trend could lead to a hollowing out of German industry if not addressed promptly.
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The warning comes in the wake of increasing concerns about global trade dynamics, particularly as China continues to expand its economic influence in Europe. The historical reference to the U.S. deindustrialization serves as a cautionary tale, emphasizing the potential long-term consequences of unchecked trade imbalances. Germany, as Europe's largest economy, plays a crucial role in shaping the continent's economic future.
The views expressed in this article are those of the author and do not necessarily reflect the views of The Guardian or its editorial team.
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