- Economic Realities: Trade between China and Germany hit €250 billion in 2023, but it’s not all rosy. Germany’s trade deficit with China narrowed to €58.4 billion in 2024, signaling shifting dynamics.
- Tech Tug-of-War: While collaborations like automated driving deals show promise, there’s growing concern about China’s tech dominance, especially in EVs.
- Green Ambitions vs. Industrial Realities: Both sides talk big on climate, but China’s green industrial policies are threatening Germany’s leadership in this sector.
- Cultural Exchanges: People-to-people connections continue, but geopolitical tensions cast a long shadow.
- Global Problem Solving: From pandemics to economic crises, cooperation is vital, but increasingly difficult.
Critical Challenges:
- Trump 2.0: The new Trump administration’s aggressive stance on China complicates EU-China relations. Europe must navigate between Chinese pressure and American demands.
- Industrial Threat: China’s export-driven growth is eating into Germany’s European and global markets. German car exports are down by half from pre-pandemic levels.
- Policy Dilemma: Germany’s opposition to EU tariffs on Chinese EVs highlights internal conflicts between protecting industry and maintaining open trade.
- De-risking vs. Decoupling: Germany’s 2023 China Strategy emphasizes reducing dependencies without severing ties completely.
The Big Question: Can this triangle maintain cooperation amid rising tensions and competing interests? Or will it fracture under pressure from both sides of the Atlantic?
Listen to our expert talk with Shaun Rein.