The tension around Taiwan has once again placed Germany in a very difficult position, because if it condemns China’s aggressiveness, it risks unleashing the wrath of the Asian giant, which is its largest trading partner.
According to the IFO Economic Research Institute in Munich, a trade war with China would lead to huge losses for some of the most important sectors of the German economy.
Losses that could reach eight billion dollars for the automotive sector and five billion for the mechanical engineering sector.
As a significant fact, between 2012 and 2021, Germany sold more than 200,000 vehicles to China each year.
Consequently, the economic institute advises the Government of Berlin to look for alternatives, establishing strategic associations and free trade agreements with similar countries, such as the United States, although with this it is difficult for it to compensate for possible losses.
First it was the energy dependence on Russia, now the enormous economic ties with China… In any case, Germany is moving on quicksand, trying to defend an international political position that collides head-on with the complex structure of economic interests that it has woven for decades.