Chinese Competitiveness Challenges German Exports in EU
(MENAFN) China is progressively making inroads into European Union markets, often at the cost of German exporters, based on a recent analysis published by the KfW Development Bank.
The study indicates that China’s influence in key European sectors is expanding, reflecting a shift in the balance of trade power.
Over the past ten years, the export structures of China and Germany have grown increasingly similar, especially in pivotal industries such as automobile production, mechanical equipment, and chemicals.
This trend points to a growing overlap in the types of goods both nations sell abroad, intensifying their competition in the EU.
According to the report, Chinese companies have been steadily increasing their presence in the European market over the last twelve years.
This ongoing expansion is heightening the economic rivalry between Germany and China. "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 report stated, emphasizing the increasing friction in trade dynamics.
Despite Germany still holding the top position as an exporter to other EU nations, its dominance is gradually diminishing.
Back in 2012, German products made up 33 percent of EU imports, but that figure had fallen to 29 percent by 2024. Meanwhile, China’s share rose significantly during the same timeframe, from a mere 1 percent to 4 percent.
In total, German exports to EU countries made up roughly 54 percent of its global exports in 2024, whereas China directed about 11 percent of its exports to the EU market.
This illustrates the growing importance of the European market for both countries.
"Various surveys among German enterprises have revealed that most of them expect the rivalry to further intensify with Chinese businesses," the report further noted, suggesting that German firms foresee even stiffer competition ahead as China continues to expand its foothold in Europe.
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