Agency Report –
German exporters are increasingly losing ground to Chinese manufacturers across the EU, a key market for Germany, according to a study published by German state lender KfW on Monday.
“China is working to export its own excess capacity. In this effort, Europe is now moving more into the focus of the People’s Republic because the conditions for selling in the US are rapidly deteriorating,” said Dirk Schumacher, chief economist at KfW.
US President Donald Trump has imposed tariffs of up to 145% on imports from China, leading Beijing to retaliate with levies of 125% on US goods.
“It is critical for Germany to create a favourable business environment and make the economy competitive in order to respond to growing competitive pressure from China as well as from other countries,” Schumacher said.
Between 2012 and 2024, Chinese exporters succeeded in capturing market share in the EU, particularly in the most important product groups for German manufacturers, according to the KfW.
The total value of German vehicle exports to other EU member states dropped from 33% to 29% over the period, the study found.
At the same time, the total value of imports from China grew from some 1% to 4%.
In the mechanical engineering sector, Chinese suppliers increased their share from 7% to 10%, while German exports to the EU shrank from 22% to 18%, with a similar development recorded in the chemical products sector.
Last year, around 54% of German exports went to the EU.
By comparison, the market has so far only accounted for around 11% of Chinese exports. According to surveys, the majority of German companies assume that the competitive situation will intensify.
