By Artem Egorov
China is increasingly crowding out German products in EU markets, according to a study by the German Economic Institute (IW).
This is especially noticeable in the field of advanced industrial products, where Germany remains the leader so far. In some sectors, China's share of EU imports in just the two years to 2022 rose by the same or even more than in the previous decade. Analysts warn that there is a risk of stopping Germany's economic engine.
After several years of growth, the German economy entered recession in May. Leading German exporters have been hit by supply chain problems, inflation and rising energy prices, calling into question the industrial future of the European economic powerhouse.
"These results are cause for concern, given the challenges posed by energy changes and concerns about Germany's competitiveness," researcher Jürgen Matthes was quoted as saying by Reuters.
Among the challenges listed in the report is the role played by Chinese government subsidies in many sectors where Chinese companies are gaining an increasing share of the EU market. Meanwhile, high energy costs following the withdrawal of Russian gas are weakening Germany's energy-intensive industries.
High energy costs have also hampered German car exports. At the same time, Chinese electric car makers began to take over the European market, Matthes added.
Earlier, a member of the Bundestag committee on energy and climate protection from the Alternative for Germany party, Steffen Kotre, said in an interview with the Izvestia newspaper that Germany is currently experiencing the beginning of deindustrialization.
According to the German politician, the decision of Berlin and the European Union to take a course towards abandoning Russian energy carriers has already led to grave consequences. In particular, as he noted, prices are rising both for industry and for citizens of Germany.
This article originally appeared in Russian at expert.ru