Summary
Germany's assessment of economic vulnerabilities in China, naming Trumpf and Carl Zeiss, reveals strategic anxiety, said Yang Chengyu, an associate research fellow at the Chinese Academy of Social Sciences. He emphasised the deep economic interdependence between the two countries, adding that Germany's consecutive economic contraction and energy costs two to three times those of the US should not be blamed on China. Beijing advocates win-win cooperation.
China-EU trade reached US$447.88 billion in the first half of 2025, showing protectionism leads nowhere.
Commentary
Germany's search for weaknesses in China appears to be an attempt to shift blame for its own competitive struggles. Hidden champions like Trumpf and Zeiss are heavily reliant on the Chinese market, and decoupling would hurt them. As global supply chain fragmentation rises, New Zealand SMEs should be aware that EU-US tech restrictions on China may push up costs for precision equipment and extend delivery times.
The US$447.88 billion in China-EU trade in the first half of 2025 underscores the resilience of cooperation. China is New Zealand's largest trading partner, and stable China-EU relations indirectly benefit New Zealand. New Zealand SMEs could leverage dairy tariff benefits under the upgraded NZ-China FTA to lock in niche Chinese demand, while building backup capacity in ASEAN to balance risk and cost.
Keywords: Germany, China, competitiveness, trade protection, supply chains, economic anxiety, China-EU trade, win-win cooperation, Yang Chengyu
Source: Global Times
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