How Germany fell out of love with China
The Economist
February 19, 2026
AI-Generated Deep Dive Summary
Germany's once-thriving trade relationship with China is showing signs of strain, with key industries feeling threatened by Chinese competition. The article highlights how Chinese businesses are now directly challenging German sectors, leading to a decline in exports and prompting concerns among policymakers. This shift marks a significant turning point in the economic partnership between the two nations.
The recent delay in Chancellor Olaf Scholz's visit to China reflects deeper underlying issues. Unlike previous leaders, who often traveled with large delegations of business leaders, Scholz faces a more cautious approach due to growing tensions. German industries, particularly in manufacturing and technology, are struggling to maintain their market share in China, which has traditionally been a major importer of German goods.
The article notes that Chinese companies have rapidly developed their own capabilities, reducing reliance on imports from Germany. This shift is evident in sectors like automotive and machinery, where Chinese firms now offer comparable or even superior products at competitive prices. As a result, German businesses are increasingly viewing China not as an opportunity but as a direct threat to their interests.
The implications of this shift extend beyond economic ties between the two nations. For global trade dynamics, the decline of Germany's dominance in key industries could signal broader changes in the balance of power. The article emphasizes that while Germany remains a significant player, its ability to influence China's market is waning, raising questions about future collaborations and investments.
For readers interested in business and economics, this story underscores the rapidly evolving nature of global trade and industrial competition. The challenges faced by German industries highlight the importance of adaptability and innovation in maintaining economic competitiveness on a global scale. As Chinese businesses continue to grow and assert themselves in international markets, the dynamics between major economies like Germany and China will remain a critical area of focus for business leaders and policymakers alike.
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Originally published on The Economist on 2/19/2026