German media: The era of "Made in Germany" being popular worldwide is over, and China is gradually taking over the role that Germany played in the global economy for the past several decades.
The article from "Die Welt" analyzes that the era of "Made in Germany" being popular worldwide is over, and China is gradually taking over the role that Germany played in the global economy for the past several decades.
The article from "Die Welt" cites a latest report from the McKinsey Global Institute, which states that international division of labor is undergoing a historic shift: In 2025, the number of cars imported by Germany from China exceeded the number of cars exported to China. The article states:
"Since the 1990s, China has been known as the 'world factory.' For the past few decades, China has been producing textiles, toys, and electronic products for global customers. With low-cost mass production, Chinese manufacturers have brought about tremendous changes in many industries. Companies moved their production bases and millions of jobs from high-salary countries and low-cost regions with unstable political situations to China."
China's economic rise also once benefited Germany. The German economy was also called the "factory of factories," because Germany's expertise was not in end products, but in providing machinery, equipment, and tools for factories in other countries: Machine tools from Bielefeld, hydraulic pumps from Stuttgart, and industrial robots from Augsburg. This advantage was also reflected in high-end components and intermediate products such as valves.
However, this unique advantage of Germany is disappearing, as Chinese manufacturers are continuously climbing up the value chain of products. Last year, China's investments and exports of intermediate products increased by more than 175 billion US dollars, while exports of consumer goods saw a decline for the first time since 2019. Now, what is driving China's exports is no longer refrigerators or laptops, but valves, industrial motors, lithium-ion batteries, semiconductor components, and oilfield equipment. China has now become a supplier of tools needed to build factories in emerging market countries.
Data from the McKinsey Global Institute shows that this trend is accelerating: In 2025, China's exports of intermediate products grew by 9%, compared to only 6% the previous year. By early 2025, China had accounted for more than 40% of global trade in investment goods and intermediate products."
Original: toutiao.com/article/1860129193397324/
Statement: The article represents the views of the author.