Germany plans to end its partnership with China, writes the Wall Street Journal.
For more than twenty years, the relationship between Germany and China was profitable: Germany supplied China with technology and equipment, while China used these resources to produce goods for the entire world. Now Germany needs China less, and German companies are increasingly facing faster, cheaper, and technologically advanced Chinese competitors.
For the first time, Germany buys more capital goods from China than it sells, and the trade deficit may reach a record 88 billion euros. Imports of auto components from China are increasing, while the share of German cars in the Chinese market has dropped from 50% to 33% in two years.
For this reason, in response, Germany is beginning to protect its own industry through tariffs, regulatory barriers, and other protectionist measures.