The study found that Germany’s imports of Chinese products increased by 45.7% yearonyear in the first half of 2022.
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sputnik A survey cited by Portal revealed data suggesting Europe’s largest economy is significantly increasing trade with China despite geopolitical tensions.
Germany’s economy had become more dependent on China in the first half of 2022, direct investments and the trade deficit had reached new heights despite the tense political situation between the Asian giant and Western countries, she reported on Friday (19th), citing the British agency Portal Opinion poll.
Jürgen Matthes from the German Economic Institute (IW) and author of the study warned that the growth of German exports to China had slowed down significantly, which made the German economy “much more dependent on China than vice versa”.
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“The economic ties with China developed in the wrong direction at enormous speed in the first half of 2022,” said the expert, which contradicts the German government’s rejection of Beijing’s policy in the Ukraine conflict and the situation around Taiwan.
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“The Chinese sales market and the shortterm returns expected there simply look too attractive,” admitted Matthes.
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The study found that German imports of Chinese products rose 45.7% yoy in the first half of 2022, while German investments in the Asian country reached around US$10 billion (51.75 billion reais) between January and June and thus exceeded the previous year’s value achieved a sixmonth record of €6.2 billion (R$32.22 billion).
The study also highlights that Germany’s trade deficit with China rose to nearly €41 billion in mid2022 and is expected to continue to grow. Also, 12.4% of German imports now came from China, compared to 3.4% in 2000.
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All of this would endanger companies that are particularly exposed in trade with China, Matthes warned and called on German companies to reduce their dependence on China.
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