28.04.2025 15:24
The term "Sick Man" used for the Ottoman Empire during its weakening final period has increasingly been used for Germany. Moreover, according to a report by the German Development Bank (KfW), this expression seems to gain further justification in the context of Germany. The report emphasizes that in the last 12 years, Chinese manufacturers have overtaken German exporters to take the lead in European markets.
The European Union (EU) markets have reported that China has taken over the market share of German exporters. The German Development Bank (KfW) has published its report on the competition between China and Germany in the EU markets.
COMPETITION BETWEEN GERMANY AND CHINA IN THE EU MARKET IS HEATING UP
The report states that Chinese manufacturers have continued to increase their market share from German exporters in Europe over the past 12 years, noting that economic competition between Germany and China in the EU markets is intensifying. While Germany is losing its export share in these countries, the report indicates that China's share is increasing, and tensions in trade between the US and China are expected to further intensify commercial competition in the EU markets between the two countries. The KfW report highlights that the export profiles of Germany and China have become more similar over the years, with both countries competing in an increasing number of product categories in the automotive, mechanical engineering, and chemical sectors, stating, "Although Germany has a higher share than China in imports from other EU countries in these product categories, the gap is narrowing."
GERMANY'S EXPORTS ARE UNDER PRESSURE
The report emphasizes that during the period from 2012 to 2024, the import value of automotive manufacturing in Germany from EU member countries has decreased from 33% to 29%, while imports from China during the same period have increased from 1% to 4%. Additionally, in the EU countries, Chinese suppliers have increased their share in mechanical engineering from 7% to 10%, while Germany's exports to the EU have decreased from 22% to 18%. In chemical products, Germany's share has fallen from 22% to 18%, while China's share has risen from 2% to approximately 6%.
54% OF GERMANY'S EXPORTS GO TO EU COUNTRIES
The report also states that last year, Germany exported approximately 54% of its exports to EU countries, while China only exported 11% of its exports to EU countries. Dirk Schumacher, Chief Economist of KfW Bank, noted that China is trying to export its excess capacity, stating, "As sales conditions in the US are rapidly deteriorating, Europe is becoming an even more important focal point for China." Schumacher emphasized the importance of creating favorable conditions for companies and making the economy competitive for Germany to withstand the increasing competitive pressure from China and other countries.