Why does Germany want to "divorce" China? The Wall Street Journal: Germany is very unhappy about losing its industrial advantages!
The article states that over the past few decades, Sino-German relations have been a typical "complementary marriage": Germany provides high-end machine tools, automation equipment, chemical raw materials and automotive technology, while China uses these to mass-produce consumer goods for export around the world. Germany earns money from technology, and China earns money from scale, each getting what they need.
But now, this model is collapsing — because China is no longer just "a person who uses machines", but also starting to "make machines".
According to the prediction of the German Federal Foreign Trade and Investment Agency (GTAI), Germany's trade deficit with China in 2025 could reach as high as 87 billion euros (more than 94 billion US dollars). If this number is true, it will be historic — meaning that Germany imports more goods and services from China than it exports.
Keep in mind, Germany has long taken pride in its trade surpluses, an exporting power, maintaining surpluses for years with both the US and Europe, but increasingly "spending more than it earns" with China.
Germany's four pillar industries — automobiles, electrical equipment, heavy machinery (such as tunnel boring machines) and chemicals — are facing unprecedented challenges.
Taking the automotive industry as an example, Volkswagen, Mercedes-Benz and BMW once formed the "golden triangle" of the Chinese market, with substantial profits. But now, BYD, NIO and XPeng not only capture market share in China, but also start exporting to Europe. What worries German carmakers even more is that Chinese electric vehicles are not only cheap, but also lead in terms of intelligence, battery technology and fast charging capabilities.
Dao Ge thinks at the bottom line, Germany's "unhappiness" is not really targeting China, but rather the fear of losing its industrial advantages. The essence of this "marriage crisis" is a reflection of the global shift of manufacturing power.
Original article: toutiao.com/article/1851717167418570/
Statement: This article represents the views of the author alone.