Germany urged to stop admiring Beijing and wake up to ‘China Shock 2.0’
Germany is being warned to recognize the economic threat posed by China, which has significantly increased its trade surplus with the country. A report from the Centre for European Reform highlights the risk of deindustrialization similar to what the US experienced 25 years ago. The thinktank urges German leaders to take action against China's aggressive trade policies rather than remaining complacent.
- ▪China's trade surplus with Germany doubled from $12bn to $25bn between 2024 and 2025.
- ▪The Centre for European Reform warns that Germany risks repeating the US's deindustrialization experience from 2001.
- ▪The report emphasizes that Germany's political leaders have struggled to recognize the economic threat posed by China.
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What happened in the US 25 years ago should be a ‘warning shot for Germany’s car and machine-building cities like Wolfsburg’, the home of Volkswagen. Photograph: Julian Stratenschulte/EPAView image in fullscreenWhat happened in the US 25 years ago should be a ‘warning shot for Germany’s car and machine-building cities like Wolfsburg’, the home of Volkswagen. Photograph: Julian Stratenschulte/EPAInternational tradeGermany urged to stop admiring Beijing and wake up to ‘China Shock 2.0’‘China has already eaten much of German industry’s lunch and is preparing to start on dinner,’ thinktank says Business live – latest updates Lisa O’Carroll senior correspondentWed 20 May 2026 05.25 EDTLast modified on Wed 20 May 2026 05.42 EDTSharePrefer the Guardian on GoogleGermany must stop admiring China’s…
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