1. Home
  2. Studien
  3. Not so Different?: Dependency of the German and Italian Industry on China Intermediate Inputs
Samina Sultan at IEP@BU Policy Brief Externe Veröffentlichung 17. April 2024 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.

to Download
Externe Veröffentlichung
Dependency of the German and Italian Industry on China Intermediate Inputs
Samina Sultan at IEP@BU Policy Brief Externe Veröffentlichung 17. April 2024

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

to Download

Institut der deutschen Wirtschaft (IW) Institut der deutschen Wirtschaft (IW)

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

Thus, the data does not prove the assumption that Germany is particular in that respect. With an industry average of around 7 percent of foreign intermediate inputs, the dependence on China also does not seem extraordinarily high for both countries.

The picture becomes more nuanced when focusing on the individual industrial sectors. In Germany, the share of Chinese intermediate inputs is highest in computer, electronic and optical products (ISIC 26) reaching around 22 percent of all foreign intermediate inputs.

Italy also obtains over 15 percent of its foreign intermediate inputs in that sector from China. However, Italy is most dependent on Chinese intermediate inputs for Textiles, wearing apparel, leather and related products (ISIC 13-15) with around 20 percent. This kind of dependence on Chinese intermediate inputs at the sectoral level warrants caution – particularly if it affects high-tech sectors, where China strives for strategic dominance.

Both Germany and Italy have several sectors that contribute significantly to value added and are also highly reliant on intermediate inputs from China. For instance, Machinery and equipment n.e.c (ISIC 28). However, while Germany has a sector – Motor vehicles, trailers and semi-trailers (ISIC 29) – that accounts substantially to value added and at the same time is less dependent on Chinese intermediate inputs, Italy lacks such a sector. In contrast, in Italy the sector that relies most on Chinese intermediate inputs – Wearing apparel, leather and related products (ISIC 13-15) – is also among those that account most to value added.

Thus, this Policy Brief emphasizes the importance of the ongoing discussion in the EU of diversification from China. This is best achieved in the short term by broadening trade relations with other countries as suppliers and customers for the German and the Italian industry, in order to reduce dependencies on China. It is therefore vital, that the EU gives greater priority to successful trade negotiations with countries in the Indo-Pacific region or Latin America.

to Download
Externe Veröffentlichung
Dependency of the German and Italian Industry on China Intermediate Inputs
Samina Sultan at IEP@BU Policy Brief Externe Veröffentlichung 17. April 2024

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

to Download

Institut der deutschen Wirtschaft (IW) Institut der deutschen Wirtschaft (IW)

Mehr zum Thema

Artikel lesen
Kein Bock mehr auf die EU: Die AfD und ihre beiden Parteivorsitzenden Alice Weidel und Tino Chrupalla wollen die EU in ihrer jetzigen Form abschaffen.
Hubertus Bardt / Lennart Bolwin / Berthold Busch / Jürgen Matthes Pressemitteilung 19. Mai 2024

Europawahl: Dexit würde 690 Milliarden Euro kosten

Die Alternative für Deutschland (AfD) fordert den Austritt Deutschlands aus der EU. Dieser sogenannte Dexit würde einer neuen Studie des Instituts der deutschen Wirtschaft (IW) zufolge nicht nur Milliarden Euro Wertschöpfung kosten, sondern auch Millionen ...

IW

Artikel lesen
Hubertus Bardt / Lennart Bolwin / Berthold Busch / Jürgen Matthes IW-Trends Nr. 2 19. Mai 2024

Brexit – Kein Vorbild für Deutschland

Die Entscheidung des Vereinigten Königreichs, die Europäische Union (EU) zu verlassen, hat bisher keine Nachahmer gefunden. Mit dem Verlust der Integrationsvorteile gehen für das Vereinigte Königreich erhebliche Handelshemmnisse und wirtschaftliche Nachteile ...

IW

Mehr zum Thema

Inhaltselement mit der ID 8880