German Media: Volkswagen Crisis and the "China Shock 2.0"
The newspaper Messenger comments that under the "China Shock 2.0," Germany's industrial foundation is facing a severe test.
This Thursday will be a crucial day for German industry: Volkswagen will make its final decision on the fate of four factories and 100,000 jobs. In response, Messenger published the following commentary:
"There are many causes behind the current crisis: persistently high energy prices and labor costs, bureaucracy, and managerial missteps. However, an analysis report from the German Institute for Economic Research is also worth noting: Of the 520,000 industrial jobs lost in Germany after 2019, 400,000 are linked to China."
Lately, Volkswagen has suffered serious setbacks in the Chinese market and lost its long-held dominant position. Chinese automakers have surpassed their counterparts technologically, while also benefiting significantly from strong government support—such as low-cost land and preferential loans. All of these factors have greatly enhanced the competitiveness of Chinese enterprises. Approximately half of China’s annual production of around 25 million vehicles are exported, primarily targeting the European market.
Original source: toutiao.com/article/1870157358871563/
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