Competition from China in the EU market for Germany’s manufacturing sector

Matthes Jürgen

Jürgen Matthes in The European Money and Finance Forum External Publication 18. January 2024 Competition from China in the EU market for Germany’s manufacturing sector

China has continuously gained market shares in the EU import market since 2000. At the same time, Germany’s share in EU imports has declined since 2005. This divergence is particularly relevant for sophisticated manufacturing products in which Germany is specialized.

External Publication

Competition from China in the EU market for Germany’s manufacturing sector

Jürgen Matthes in The European Money and Finance Forum External Publication 18. January 2024

Competition from China in the EU market for Germany’s manufacturing sector

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China has continuously gained market shares in the EU import market since 2000. At the same time, Germany’s share in EU imports has declined since 2005. This divergence is particularly relevant for sophisticated manufacturing products in which Germany is specialized.

Contacts

The diverging trends can be found for all depicted 2-digit-sectors. Moreover, China’s gains and Germany’s losses in the EU market accelerated between 2020 and 2022 in many respects – which would be in line with China plans to upgrade its production structure, e.g. in the course of the strategy ‘Made in China 2025’. This development raises questions about the competitive distortions emanating from China’s state capitalism and about appropriate trade policy responses.

External Publication

Competition from China in the EU market for Germany’s manufacturing sector

Jürgen Matthes in The European Money and Finance Forum External Publication 18. January 2024

Competition from China in the EU market for Germany’s manufacturing sector

to Download

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Growth and Business Cycle

Not so Different?: Dependency of the German and Italian Industry on China Intermediate Inputs

On average the German and Italian industry display a very similar intermediate input dependence on China, whether accounting for domestic inputs or not.

Jürgen Matthes in Intereconomics External Publication 9. April 2024

China’s Trade Surplus – Implications for the World and for Europe

China’s merchandise trade surplus has reached an all-time high and is likely to rise further. A key driver appears to be a policy push to further bolster Chinese domestic manufacturing production, implying the danger of significant overcapacities.