The awakening is difficult for Germany.The Russian war in Ukraine highlights the fragility of its economy.If dependence on coal, oil and Russian gas has been mentioned many times by Berlin to oppose any ban on gas imports from Russia in the European Union, another dependence, also linked to its model based onExports, arouses fears across the Rhine: that with regard to China.This Wednesday, in an interview with the newspaper Die Zeit, the German Minister of Finance, Christian Lindner (also leader of the Liberal FDP party), was indeed worried about the "strong dependence" of Germany at theChina, calling for "diversifying" the country's business partners, in a context of international tensions exacerbated by the war in Ukraine.
Very strong economic links between China and Germany
"We have to diversify our international relations, including for our exports," he said.War asked the question of the commercial ties that Germany, an exporting nation, with other countries accused of flouting human rights, such as China.
Exporting nation, Germany is indeed the main economic partner of China.In 2021, more than 245 billion euros were exchanged between the two countries, a figure up 15.1% compared to the previous year, which was marked by the COVID-19.Many German industries have relocated part of their production in China, and therefore massively import elements essential to their activity from this country. By elsewhere, China is one of the main customers in the German automotive sector.
"The time may have come to do business preferably with those who are not only business partners, but who also want to be partners from the point of view of values," said Christian Lindner.The war in Ukraine asked the question of the commercial ties that Berlin maintains with other countries accused of flouting human rights, such as China.
German industrialists plan to reduce their presence in China
These words come then that, according to a study carried out by the IFO Economic Institute published at the end of March, many manufacturers are already planning to reduce their presence in China.According to this work "near one in two" which says it is dependent on Chinese inputs plans to reduce these imports.In the German manufacturing sector, "46% of companies declare that they are supplied in China" for elements entering production, and among these companies "almost one in two plans to reduce these imports to the future", declares LisandraFlach, head of the international economy at IFO and co-author of the study.
The fall of the iron curtain at the end of the 1980s had opened important commercial opportunities to many German companies with China and the possibility of relocating production at lower cost.But against the backdrop of increasing geopolitical tensions, political uncertainty "is now cited by 41% of respondents as a reason to reduce their purchases of Chinese inputs.
The war in Ukraine and the sanctions inflicted on Russia "sheds new light on the geopolitical importance of economic interdependencies with China", according to the IFO study carried out in February with 4,000 companies and published on the eve of'A virtual summit between EU and China leaders.
Already showered by the COVVI-19
The ardor of the German bosses to obtain in the Middle Kingdom have already been showered from the Cavid-19 pandemic, with the blockages of factories and ports in China and the increase in deadlines and freight costs that havefollowed.In addition, there are human rights violations in China, especially in the Xinjiang region, and the effects of state capitalism since the presidency of Xi Jinping in China which are always more debated.
This is evidenced by the recent blocking of imports of Lithuania imposed by Beijing against the backdrop of diplomatic tensions with Taiwan.
In fact, dependence on China imports is mainly expressed in raw materials and less in industrial products, according to the study.About 65 % of the raw materials entering into the manufacture of electric motors come from China, in particular the rare earths, also essential for the construction of wind turbines.
The "biggest challenge for Germany and Europe is the diversification of countries where raw materials come from, which is much more difficult to do than with final products", according to IFO.
The authors of the study distance themselves from the calls for "decoupling" which "increases in Germany", by suddenly cut themselves off from the Chinese economy, because this "would disturb specific key supply chains".
On the other hand, they call to conclude "free trade agreements" with emerging countries to help companies diversify their supply chains, citing the case of negotiations in standby with India or Malaysia.
Read also 8 mnl'lemagne, the weak link in Europe
(with AFP)
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