Germany and its Western peers must urgently understand the nature and sheer scale of China’s advances if they are to withstand the growing pressure on their key industries.
Xi Jinping greets German Chancellor Friedrich Merz ahead of their meeting at the Diaoyutai State Guesthouse in Beijing, February 25, 2026. Credit: German Chancellor Friedrich Merz
Germany has spent more than half a decade talking about its need to de-risk from China’s economy. Since 2023, this has been its official policy.
Meanwhile, numerous German companies have been expanding their operations in China’s market, while remaining heavily reliant on Chinese suppliers. Even where a company’s share of revenue from China has declined compared to other markets, their absolute exposure has often increased, such as in automotive manufacturing and semiconductor equ
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