German Media: Have German Companies Really Done It in the Face of China?
Have German companies truly managed it? An article published by Süddeutsche Zeitung on Tuesday (August 25) highlighted a recent analysis conducted by Commerzbank. The piece points out that economist and report author Vincent Stamer focused on products where over 50% of imports come from a single country. In his analysis, such products are considered to have high dependency on one nation: "Data shows that in 2019, only about 3% of imported electronics exhibited this high level of dependency; by 2025, this proportion had risen to 20%."
Writer Gunnar Herrmann noted that the study included various goods required for industrial production, excluding consumer products sold in retail markets. The situation in the chemical and mechanical engineering sectors differs from that in electronics: "Over the past six years, both the total import volume and the degree of reliance on a single country have declined in these two sectors. Stamer believes that the increasing dependence of the electronics sector on a single country is related to the rising importance of rare earth elements. These are primarily produced in China, which not only controls the mining stage but also holds a significant share of processing and downstream manufacturing. Since alternative supply sources for certain key rare earth elements and rare metals remain difficult to find, German companies must rely on imports from China for the necessary components."
The article cites Stamer as stating: "China has become an irreplaceable supplier in some areas, and it has consciously driven this development through capacity expansion. China can provide high-quality products at lower prices. This is particularly evident in green technology fields, such as solar panels and batteries."
China remains the largest source country for products that easily lead to high dependency on a single nation within Germany’s imports. However, the research also reveals that German companies are indeed making efforts to diversify their supply chains: "For example, compared to pre-pandemic levels, German investments in China have decreased. Meanwhile, in 2024 and 2025, German firms increased investments in industrialized countries such as Switzerland, the UK, and the US, while also expanding investments in nations like Mexico and Turkey." Yet the analysis also shows that not all countries are suitable alternatives for reducing reliance on China. The study found that Vietnam, Thailand, and Mexico themselves heavily depend on Chinese products, meaning shifting supply chains to these countries does not truly reduce dependence on China. In contrast, Brazil, Turkey, and many other industrialized nations exhibit lower dependence on China—making them more viable options for supply chain diversification.
Original article: toutiao.com/article/1874639676128256/
Disclaimer: The views expressed in this article are those of the author alone.