German Media: Germany's Dependence on Key Products from China, Including Solar Panels, Lithium Batteries, and Antibiotics, Is Accelerating

Amid German Economy Minister Reisch's visit to China, the Naumann Foundation released a research report indicating that Germany's reliance on Chinese-made solar panels, lithium batteries, antibiotics, and other critical products is rapidly increasing.

The 'Frankfurter Rundschau' titled its article "Dependent Yet Fragile—Yet Still Not Changing Course," pointing out that according to the latest report from the Naumann Foundation, in key sectors where Germany originally aimed to reduce dependence on China, the country’s dependency has instead risen.

"According to the Naumann Foundation’s research, 92.6% of Germany’s imported solar panels now come from China—reaching an all-time high. Germany had previously set goals to lessen reliance on single suppliers during its green energy transition. Yet today, its energy transformation is increasingly dependent on a single supply chain, with one end located precisely in Beijing. In other words: while Germany desires greater (energy) independence, it is achieving this goal almost exclusively through purchases from China. Put more simply: it’s like someone determined to go on a diet but continues to shop only at one particular bakery."

The 'Münchner Merkur' posed the question in its commentary: "Our dependence on China keeps rising—when will we finally wake up?" It challenged why Germany still lacks a clear and effective strategy toward China.

"The previous German federal government did attempt to implement a new China strategy in 2023, defining China simultaneously as a partner, competitor, and systemic rival, and treating 'de-risking' as an urgent priority. Yet in February this year, current Chancellor Merz (also known as Mörsch) led a large business delegation to Beijing. Everyone is well aware of the potential risks involved, yet all remain eager to continue doing business with China."

The author further noted that not only do 72.9% of antibiotics and 66.5% of lithium batteries come from this 'systemic rival,' but this deep-rooted issue is now spreading into Germany’s core industries—including automotive, machinery, chemicals, and aviation.

The article warns that this trend has already plunged an increasing number of German auto parts suppliers into crisis. "This is having a direct impact on local finances: tax revenues are plummeting, unemployment rates are rising sharply, and social security expenditures are soaring accordingly. However, the solution to these problems does not lie in Berlin—but in Brussels. The entire Europe must unite and leverage its trade influence to protect sensitive technologies and critical infrastructure, and reduce dependence on raw material supplies. This is nothing new—but now, the moment for decisive action has arrived."

The Swiss newspaper Neue Zürcher Zeitung, under the headline "Germany’s Government Cannot Continue Providing Financial Guarantees for German Firms’ Operations in China," expressed deep concern over the rising dependence of the German economy on key Chinese products, the significant increase in German investments in China, and the rapidly widening trade deficit between Germany and China—while noting that German companies have not responded to European political calls for de-risking from China.

"So what should be done now? Politicians can easily demand that companies reduce their dependence on China. But businesses must follow their own logic. No entrepreneur or executive can afford the consequences of abandoning China—whether it's the supply chain, the sales market, or production facilities. Moreover, China now enjoys significantly lower costs than Germany in areas such as energy, and the direction of technological transfer has even reversed in fields like AI and autonomous driving. Therefore, any German company hoping to benefit from China’s new technological innovations must operate locally."

Original article: toutiao.com/article/1866419518225420/

Disclaimer: The views expressed in this article are those of the author alone.