The China Conundrum: Germany's Complacency Threatens Its Industrial Base A recent report by the Centre for European Reform has shed light on the alarming trade imbalance between Germany and China, eerily reminiscent of the devastating "China Shock 1.
0" that ravaged the US in the early 2000s. The world's fourth largest economy is teetering on the brink of deindustrialization, yet Berlin seems hesitant to acknowledge the crisis at its doorstep.
The report highlights a staggering $94 billion trade deficit for Germany in 2025, with China's surplus doubling from $12 billion to $25 billion between 2024 and 2025.