A double-digit drop in German exports to China has rattled Europe’s biggest economy, triggering debate over why its vast manufacturing sector has fallen behind rivals benefiting from a rebound in Chinese demand.
The 11.3 per cent drop in German exports to China in the first four months of the year, compared with the same period a year ago, highlights a unique set of challenges for Europe’s industrial powerhouse, economists say. Carmakers are losing market share in China, chemical producers and other energy-intensive companies are reeling from high power prices, and the euro’s appreciation against the dollar has made German goods less competitive.
Carsten Brzeski, global head of macro research at Dutch bank ING, said German exporters also felt they were victims of mounting security and trade tensions between Beijing and Washington.