German media: Germany's economic status is declining, while China has significantly increased its global market share

According to a report by German television station N-TV: Germany's economy relies on exports, but China's export industry has surpassed Germany in many areas. Only a few sectors such as automobiles, medical technology and aviation are exceptions.

According to a report by the Basel Prognos Institute, Chinese enterprises currently have twice the share of German companies in global exports, at 16% compared to Germany's 8%. The experts at the institute predict that with the United States increasingly isolating itself from the rest of the world, competition between China and Germany for global market share will become more intense in the coming years. It is expected that China will transfer more of its exports to the US to Germany.

"China will increasingly try to sell its products in other overseas markets, which will further intensify competitive pressure in these markets," said Bertram Broschat, managing director of the Bavarian Economic Association in Munich, who commissioned this research.

A recent study by the German Federal Bank also showed that Germany is falling in the global market, not only compared to China, but also to other Eurozone countries and the United States.

The Prognos Institute's research focused on six industries where German industry has traditionally been strong: automobiles, mechanical engineering, electrical engineering, electronics and optics, and "other vehicle manufacturing" - a category that includes the railway industry and aircraft manufacturing. In 2013, in these six product categories, three categories had a higher global export share for Germany than China: the automotive industry, mechanical engineering, and other vehicle manufacturing. By 2023, German industry only led in automobile exports, but the lead had significantly narrowed. So far, Germany's global market share has remained relatively stable, but China's market share has increased significantly.

According to the report, German companies still hold a very strong position, especially in Europe and North America. However, in other parts of the world, such as Southeast Asia, South America, and Australia, Chinese industry has rapidly expanded its market share in recent years.

A region where German industry may once again catch up is South Asia, including India: Sino-Indian relations have traditionally been rather fragile, and the EU hopes to reach a free trade agreement with India.

The authors of the report emphasized: "Although China is a strong competitor, it is not unbeatable." German businesses and politicians have an initial advantage of "resilience" that can create competitive conditions for the domestic export industry in the future. "Policy makers must improve market access through further free trade agreements. Finally, it must be required that China ensures fair competition."

Original: https://www.toutiao.com/article/1837756856927260/

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