Germany is steadily losing export market share to China within the European Union, according to a report released Monday by the KfW Development Bank.
The report highlights that over the past decade, the export profiles of Germany and China have increasingly converged, particularly in key sectors such as automotive, mechanical engineering, and chemical products.
Chinese manufacturers have been expanding their market share across the EU at the expense of German exporters for the past 12 years, intensifying economic competition between the two countries.
"While Germany is losing export shares, China is making gains. In addition, the export profiles of both countries have been converging for years. They are competing in more and more product categories," the KfW report said.
Although Germany remains the leading exporter to other EU countries, its dominance is slowly eroding. In 2012, Germany accounted for 33% of EU imports, but by 2024, that figure had declined to 29%. Over the same period, China’s share rose from 1% to 4%.
In 2024, goods exported from Germany to other EU countries made up around 54% of its total exports, while goods from China accounted for 11% of the EU's imports.
"Various surveys among German enterprises have revealed that most of them expect the rivalry to further intensify with Chinese businesses," the report added.
The study also observed a shift in China's export structure, noting a significant decline in the share of labor-intensive goods. The proportion of domestically assembled items in China’s total exports fell from 55% in 2001 to just 20% in 2024.
"China is working to export its own excess capacity," said KfW Chief Economist Dirk Schumacher. "In this effort, Europe is now moving more into the focus of the People’s Republic because the conditions for selling in the United States are rapidly deteriorating," he added.
Schumacher emphasized that Germany must strengthen its competitiveness to face rising pressure not only from China but also from other global players. "It is critical for Germany to create a favorable business environment and make the economy competitive," he said.
France has continued activities that undermine the Azerbaijan-Armenia peace process, including espionage and information campaigns targeting Baku, acc...
Russian sailors aboard a naval frigate fired warning shots at a civilian yacht in the English Channel on Tuesday after the vessel reportedly came too ...
QatarEnergy is prepared to rapidly restore liquefied natural gas (LNG) production at its Ras Laffan complex once shipping routes through the Strait of...
Iran’s World Cup campaign has been overshadowed by travel disruption, organisational problems and a shortage of key support staff, with players and ...
Israel has formally assumed planning and construction powers at one of the most sensitive religious sites in the occupied West Bank, ending an arrange...
France has continued activities that undermine the Azerbaijan-Armenia peace process, including espionage and information campaigns targeting Baku, according to Azerbaijan’s State Commission Against Foreign Interference and Hybrid Threats.
Russian sailors aboard a naval frigate fired warning shots at a civilian yacht in the English Channel on Tuesday after the vessel reportedly came too close, according to a source familiar with the incident.
QatarEnergy is prepared to rapidly restore liquefied natural gas (LNG) production at its Ras Laffan complex once shipping routes through the Strait of Hormuz return to normal, according to a source familiar with the matter.
Israel has formally assumed planning and construction powers at one of the most sensitive religious sites in the occupied West Bank, ending an arrangement that had been in place for nearly three decades.
Details of a reported draft memorandum of understanding between the United States and Iran offer the clearest picture yet of how both sides plan to end months of conflict and move towards a longer-term settlement.
The U.S. and Iran say they have reached a deal to end their conflict, with an immediate ceasefire and reopening of the Strait of Hormuz after the lifting of the U.S. naval blockade. Talks will continue over the next 60 days to finalise the agreement
A senior U.S. official said on Monday that the memorandum of understanding linked to the U.S.-Iran agreement had been signed by President Donald Trump, Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf.
Israeli Prime Minister Benjamin Netanyahu has told U.S. President Donald Trump that Israel does not consider itself bound by a Lebanon-related provision in an emerging agreement with Iran, according to Israeli officials.
A strong 6.7-magnitude earthquake struck Indonesia's Sulawesi island early Tuesday, killing at least one person and injuring four, according to emergency authorities.
Russian sailors aboard a naval frigate fired warning shots at a civilian yacht in the English Channel on Tuesday after the vessel reportedly came too close, according to a source familiar with the incident.
Leaders of the Group of Seven (G7) have called for a strong and coordinated international response to the Ebola outbreak in the Democratic Republic of the Congo, urging countries to commit more resources to contain the spread of the virus.
Türkiye’s Foreign Minister Hakan Fidan has warned against actions in the Black Sea that could threaten regional stability, saying he raised the issue directly with Russia during talks in Moscow.
Lithuania’s ruling Social Democratic Party has said its chairman, Mindaugas Sinkevicius, is preparing to become the country’s next prime minister, replacing Inga Ruginiene.
The United Kingdom has imposed a new wave of sanctions on Russia, targeting key financial institutions, logistics networks and vessels accused of helping Moscow sustain its war in Ukraine.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment