(JW Insights) Aug 17 -- "Chinese manufacturers are increasingly giving German manufacturers a run for their money in their home European Union market, especially in advanced industrial goods where Germany is a leader," reported Reuters on August 15.
A study by the employers' economic think tank IW found that in some sectors, China's share of EU imports had risen as much as or more in the two years to 2022 as they had in the preceding decade, prompting the think tank to warn that there was a risk of Germany's economic motor stalling.
After years of growth, Germany's economy entered recession in May as its champion exporters were battered by supply chain woes, inflation, and rising energy costs after Russia's invasion of Ukraine, prompting much soul-searching on the industrial future of Europe's economic powerhouse, reported Reuters.
"These findings cause worry given the challenges of the energy change and problems with Germany's competitiveness," said researcher Juergen Matthes.
The study listed Chinese state subsidies and high energy costs for German companies, according to the Reuters report.
