Germany Deepening Economic Ties With China

Germany is shutting down operations in its own country and moving some of its industry to China because of strict regulations, Asia Times published on November 27.

Dependent: Germany is growing more reliant on the Chinese market. Despite America’s calls to decouple from the authoritarian nation, German industry is pushing ahead with greater investment in China.

A recent study by the Rhodium Group found:

• German greenfield investment reached a record high of €3.6 billion (us$3.9 billion) in the second quarter of 2024.
• German foreign direct investment (fdi) in China constitutes the large majority of the European Union’s fdi in China, particularly in the automotive sector.
• Since 2022, German industrial giants bmw, Volkswagen and basf have consistently ranked among the China’s top five EU investors.

Volkswagen sold its operations in China’s northwestern Xinjiang region, largely because of China’s history of human rights abuses and forced labor in the area. But this does not reflect the greater trend. Even as German politicians have vocalized intentions to “de-risk” the country from China, German industry hasn’t shown substantial signs of following that path.

The report estimated that German fdi in China would continue to rise through the end of 2024 and into 2025.

The Trumpet said: The Trumpet has long forecast a coming brief alliance between a German-led European Union and major Asian powers, centered on trade and commerce. The Bible calls this alliance the “mart of nations.”

Learn more: Read “The Great ‘Mart of Nations.’”