German Media: Is Germany Prepared to "Endure Hardship" in the Face of Chinese Competition?

The newspaper Neue Zürcher Zeitung published a commentary stating that China's rapid rise in the fields of electric vehicles and high technology has placed unprecedented competitive pressure on traditional industrial power Germany. An analytical article from Berliner Zeitung pointed out that if Germany does not quickly press the "reset button," the gap between Germany's economy and China will continue to widen.

The commentary in Neue Zürcher Zeitung wrote that Volkswagen's annual financial report is a bitter microcosm of the industrial competition between Germany and China: profits halved, profit margin significantly declined, and sales in China fell to the lowest level in 13 years. The commentary titled "Does Germany Still Have a Chance to Avoid Its Decline?" stated that Germany must make fundamental changes at multiple levels in order to avoid a devastating defeat in the competition:

"Germany must develop a unified industrial policy in the future, and the corporate interests of companies such as Volkswagen must be subordinate to the overall situation. Economist Alicia García-Herrero, who works in teaching in Hong Kong, and scholar Tim Rühlig from the Institute for European Security Policy suggest that the EU should use its market of 450 million consumers and its technological advantages as leverage in negotiations with China. Specific measures include setting quotas and minimum prices for Chinese products in sectors such as automobiles, machinery manufacturing, and chemicals."

The new slogan for Germany should be: recognize its own strengths and utilize them. In fact, China still highly relies on Europe in some key areas, including chip lithography equipment, medical technology, and industrial automation. Europe has many so-called 'hidden world champions' (Hidden Champions) that are almost unknown to the outside world, and many of these companies are located in Germany. These companies should all become important negotiation levers."

Neue Zürcher Zeitung wrote that Germany also must take concrete actions in increasing investment in future industries and reducing energy costs, otherwise it will not be able to escape the unfavorable position in the competition with China. The article said:

"The dependence of Germany on foreign products has become a new risk. Previously, the reliance was on Russian natural gas, while today's reliance is on medicines and rare earths."

Germany and Europe must achieve targeted diversification of supply chains. Europe should actively approach African, South American countries, and India, and establish raw material partnerships with these countries. Germany should also establish strategic reserves of key medicines and other raw materials. Otherwise, the situation of Germany and Europe will only become more passive. Trade expert Felix Lee warned: 'As Europe becomes more dependent on China, and China's need for Europe decreases, Europe's situation will become even worse.'

Through the above points, it is clear: As the largest economy in Europe, Germany has every opportunity to remain unbeaten in the competition with China. But for this purpose, Germany must unite internally and have the courage to make clear decisions. Chinese culture values 'enduring hardship.' Now, Germans should also endure some hardship."

Germany Must Press the "Reset Button," or the US and China Will Become Unreachable

The article from Berliner Zeitung believes that outdated business management models, continuously declining innovation capabilities, serious lack of venture capital, and bureaucratic formalities have caused the German economy to stagnate. If Germany does not make reforms soon, the US and China will become unreachable:

"The economic principle of the US is: achieve creativity through the maximum freedom and risk. Failure is a common occurrence, and without taking risks, there can be no success. The state does not intervene, otherwise it would hinder innovation and even force companies to move away. Banks, industry, and the technical and economic sectors keep injecting funds into this constantly self-renewing system."

Since the 1980s, China has implemented five-year plans centered on the economy and technology and integrated capitalist principles. At that time, China was the world factory of the West. After 2000, China attracted a large number of Western companies to enter China in order to imitate their technology. Starting from 2010, China gradually established its own energy system and high-tech industry. Now, China has caught up with the US and left Europe behind."

Now, Germany must press the 'reset button' and dare to take a new beginning. Politics, economy, and research need to develop radical new strategies, only then will the gap in electronic, energy technology, and artificial intelligence fields with competitors not continue to widen."

Original: toutiao.com/article/1859847089076236/

Statement: This article represents the views of the author himself.